Nio Share Price Predictions for 2022, 2025 and 2030: Buying the Dip?
Nio’s share price has come under intense pressure over the past few months as concerns over its growth remain. The stock also tumbled, alongside the performance of other Chinese stocks in the U.S., as delisting fears remained. As a result, NIO’s stock price is trading at $24, about 63% below the 2021 high.
Nio market sentiment
Like other Chinese companies, general sentiment for Nio’s share price has been relatively weak over the past few months. The stock fell more than 60%, bringing its total market capitalization to over $38 billion. Other Chinese stocks and ADRs like Alibaba, XPeng, Li Auto and Baidu sank in a bear market.
There are four main reasons for this. First, there are fears that the Biden administration will remove most Chinese stocks from US exchanges. Second, there are concerns about slowing growth in the auto market as the chip shortage continues.
Third, Nio’s stock price has fallen due to increasing competition in the electric vehicle industry. Recently, we’ve seen companies like Lucid, Rivian, and Ford start selling their electric vehicles.
Finally, Federal Reserve policies had a negative impact on most growth stocks. Indeed, the Nasdaq 100 index fell more than 15% from its all-time high. In addition, the valuation of the company raises concerns.
Nio Stock Market News
Nio’s stock price has recently fallen, even after announcing major news.
First, Nio announced strong shipments in December even as the chip shortage continued. The company sold 10,489 cars in December, an increase of around 50%. Additionally, it sold 25,034 cars in the fourth quarter and 91,429 in 2021. This is remarkable growth for a company that started manufacturing less than two years ago.
The second news from Nio is that the company has recently launched its insurance brokerage business with a capital of around $8 million.
Finally, Nio signed an agreement with Baosteel, a leading nutrition company in China.
Nio’s subsequent results will be released in March 2022. Analysts expect the company’s revenue to reach more than $1.5 billion in the fourth quarter.
Will Nio’s stock go up?
Several key catalysts could push Nio’s stock price higher in the coming months.
First, the company has a strong market share in China, the world’s largest market for electric vehicles. As competition increases, the company’s leadership position in manufacturing means it will continue to do well.
Second, as Tesla has proven, having a good reputation is an essential part of any electric vehicle company. Nio has the second most popular brand recognition in China after Tesla, which is an added bonus.
Another reason why Nio’s share price could rebound is the fact that it received a European license in 2021. This means that the company will soon start shipping cars to European countries, which are major players. of the electric vehicle industry.
Nio stock price forecast for 2022
2022 started with a big reset for electric vehicles. Most of them, including Tesla, have seen their stock prices drop by double digits.
Analysts have mixed feelings about Nio’s stock price. Data compiled by Marketbeat shows that the average target for the stock is $57, which is significantly higher than the current $24.
Some of the bullish analysts on Nio’s share price come from 86 Research, Macquarie, HSBC, Deutsche Bank, Mizuho and Citigroup.
Another broader look from most analysts shows that most of them are bullish on the stock. Moreover, data compiled by Tipranks shows that the target for the stock is $59, which is also above the current level.
Meanwhile, according to Long Forecast, Nio’s stock price will remain in a narrow range for the next few months. They expect stocks to be below $30 by the end of 2022.
Nio Stock Market Forecast 2025
It’s hard to predict how a stock will behave in about three years, as history has shown us. The situation is more volatile for Nio as it is a Chinese company which could probably be discounted in the United States.
All factors constant, it is possible that the Nio stock price will do well by 2025 as electric vehicles become more widespread. As you already know, many countries like those in Europe and even China have plans to phase out combustion engine vehicles.
By 2025, Nio will have perfected its manufacturing process and expanded its operations to other countries. According to Long Forecast, the stock will trade at around $55 in January 2025.
Nio analyst forecasts
Nio Stock Market Forecast 2030
In general, I’m a little bullish on Nio’s stock price in the long term due to the company’s rapid growth. Therefore, I think the stock will be considerably higher than it is today. However, based on its historical performance, we cannot rule out a situation where the stock will rise three times by 2030 to over $70. As Tesla has proven, this is a possible scenario.
Nio share price history
As shown below, Nio’s stock price has had a roller coaster ride as a public company. The company went public in 2018 and its share price crashed to an all-time low of $1.20. At the time, there were concerns about the company’s existence as a going concern.
It then began a spectacular rally in November 2019 as the company focused on launching its products. Since then, it has jumped over 5,400% and reached an all-time high of $65. Today, the stock is about 65% below its all-time high.
Nio share price history
Is Nio a good buy and hold stock?
Although Nio is a good company, it is also very risky. Being a Chinese company, there are concerns about the accuracy of its financial results. In the past, we have seen Chinese companies publish inaccurate figures.
Another concern is that the company could be delisted in the United States. If that happens, many American investors will carry the bag.
Short interest on Nio shares
Short interest refers to the number of shares held by short sellers. These are people who bet that a stock will go down. After the Wall Street Bets situation, we have seen the short-term interest of many companies decline. Nio’s current short interest stands at just $1.5 billion, which is the lowest level in over a year. At its peak, the value of stocks held by short sellers was worth more than $4 billion.
How many cars has Nio sold?
Nio is a relatively young company which is in the process of increasing its production. Nio has sold over 160,000 cars, which is a remarkable number for a company of its age. Analysts expect it to sell more than 500,000 cars a year over the next five years.
Is Nio stock overvalued?
Like most EV stocks, Nio is currently overvalued. Furthermore, it is a loss-making company that makes less than $4 billion in annual revenue valued at nearly $35 billion. The company has a price-to-sales ratio of 5.89, which overvalues it. However, this overvaluation can be justified if the company maintains its growth.
The Nio share price has performed well over the years. In this article, we explained why it worked like that. We have also identified the potential risks the business currently faces.