Nio Inc (NYSE: NIO), the Chinese electric vehicle (EV) giant, has faced significant challenges that contributed to a 50% decrease in its share price over the past year. However, it might be a great opportunity to capitalise on a good investing opportunity.
A fundamental lack of progress in expanding production and delivering vehicles to customers has been a major concern. Various factors have hindered Nio’s growth, including delays caused by COVID-19, a slowing Chinese economy, and heightened competition.
However, the latest quarterly report from Nio underscores the company’s remarkable progress. Nio achieved a new record-high in quarterly deliveries, yet it’s not yet reflected in the price.
The data obtained and analyzed by Finbold reveals that Nio achieved a total of 109,993 vehicle deliveries in 2023, spanning from the first quarter to the third quarter. This equates to an average of around 400 daily deliveries over the course of the year. Notably, this performance showcases a year-over-year growth of 33.43%, representing an increase of 82,434 deliveries compared to the same period in 2022.
Breaking down the quarterly delivery figures, it’s evident that in the third quarter of 2023, Nio successfully delivered 55,432 units, marking an impressive 75.37% growth compared to the 31,607 units delivered during the corresponding quarter in 2022.
Reflecting on the second quarter of 2022, Nio had 23,520 vehicle deliveries, experiencing a marginal 6.14% decrease from the 25,059 delivered in the previous year. As for the first quarter of 2023, Nio achieved 31,041 vehicle deliveries, demonstrating substantial growth of 20.46% compared to the same period in the prior year.
Nio’s cumulative deliveries of smart EV reached an impressive milestone, totaling 399,549 as of September 30, 2023. This achievement signifies not only the brand’s increasing market share but also the growing adoption of EV worldwide.
Leveraging AI-powered tools to predict Nio price
In an effort to gain insight into Nio potential price trajectory for the upcoming year, Finbold has harnessed the power of CoinCodex (AI algorithm) to predict the price of the stock.
As forecasted by the AI-powered prediction tool, it’s anticipated that the stock’s price will reach 21.68 in a year’s time. If this prediction materializes, it would be around a 204% increase in comparison to the current price of the stock.
Such a substantial gain in value holds significance for investors, potentially opening up avenues for capitalizing on current EV trends and achieving strong returns on their investments.
Based on predictions generated by the AI-powered tool CoinCodex, Nio’s shares are anticipated to reach $61.7 in 2025, as per data retrieved on October 28th. This projection represents approximately a 720.8% increase compared to Nio’s current stock price of $7.4.
Investing in emerging companies like Nio comes with a high risk-reward ratio. Therefore, investors should be vigilant and regularly follow monthly and quarterly reports, as these can significantly influence the direction of the stock price.
The path ahead is still uncertain
Nio faces potential challenges, including increased competition in the EV space and external factors like the European Commission’s recent investigation into Chinese EV subsidies.
The possibility of new tariffs in the future could affect Nio’s expansion efforts, especially in the European market. Investors should pay close attention as this situation unfolds, as it could significantly impact the company’s growth.
While Nio’s recent upturn in deliveries is a positive sign, the stock may not experience sustained upward movement until a substantial and consistent trend of production growth becomes evident. This will be a critical aspect to monitor in the coming months for investors and stakeholders.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.