Nio stock analysis: The suffering electric vehicle (EV) market received a break and a limited comeback in February 2024, which was, surprisingly considering its 2023 performance, led by Lucid Motors (NASDAQ: LCID), whose stock soared dramatically following many good events and important agreements.
Despite the recovery, most EV companies began to struggle again in the second half of the month, with Nio Inc. (NYSE: NIO) leading the way.
Indeed, Nio did not gain from Elon Musk’s Tesla Motors (NASDAQ: TSLA) or Lucid’s support from Saudi Arabia, nor did it surge with the Chinese market as the government threatened to intervene to stabilize its stocks.
Nio stock price chart
Nio’s stock market performance in 2024 has often been characterized by a sharp downturn, the majority of which happened by late January. Even if there was a modest increase at the beginning of February, it was insufficient to reverse the general downward trend, and the Chinese EV manufacturer is now down 29.22% year to date (YTD).
Furthermore, the price of Nio shares has decreased by 0.33% over the past 30 days, notwithstanding a brief increase just after February 5. The company’s stock fell 2.93% on Tuesday, February 20, closing at $5.96.
Will Nio stock rise in 2024?
It seems unlikely that there will be a significant Nio rally very soon due to the general conditions in the industry, which have been referred to as the “EV winter” in recent weeks.
The industry’s growing pressure, as evidenced by the fact that companies like Ford (NYSE: F), which do not specialize in electric vehicles, have begun lowering prices on their non-fossil fuel models, supports this projection even more.
Nevertheless, Nio Inc. has some good news because it has been making better models and has debuted its extended-range ET5 in China.
Furthermore, it is too early to tell how the Chinese strategy to stabilize its stock markets will actually play out, but Nio may stand to gain a lot.
Analysts rate Nio stock
Wall Street analysts, or at least the 10 listed on the stock research site TipRanks, are still optimistic about Nio stock in spite of the company’s several losses in recent months. As of press time, six experts had the EV maker rated as a “buy,” four were neutral about its shares, and the company was actually ranked as a “moderate buy.”
Analysts’ 12-month price estimates are also very optimistic; they predict that Nio shares will increase by 77.39% to $10.55 per share in 2024, on average. Considering the press time price of $5.96, even the lowest objective of $8 represents an upside.
It is noticeable that the recent trend for Nio stock price expectations has been falling, despite the overall optimism. When the EV maker’s shares were valued at $5.71 at the beginning of February, the average anticipated upside was 90.19%, as opposed to the current 77.39% from $5.96.
Nio stock technical analysis
The technical analysis (TA) for Nio stock that was obtained from TradingView on February 21 is primarily negative, in contrast to the analysts’ opinions. Moving averages record NIO as a “strong sell,” oscillators indicate “neutral,” and the EV maker’s shares are actually graded as a “sell” altogether.
Lastly, Nio shares are graded as a “sell” based on the stock’s performance over the last 24 hours, week, and month. The technical analysis is almost the same for all three of the primary time frames that are available on the platform.
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