Nio Inc. (NIO) could be the next EV success story.
For one, global demand for such vehicles is only expected to grow. In fact, according to the International Energy Agency, we could see about 130 million EVs on the road by 2030, a monumental move from 5.1 million in 2018.
Two, Nio is seeing a good deal of upgrades. UBS analyst Paul Gong upgraded the stock to the equivalent of a Hold from a Sell. The analyst also raised his price target from $1 to $16, according to Barron’s. Then, Morgan Stanley upgraded the stock from Equal Weight to Overweight, noting the investment from the Hefei government “not only removes funding risk but also advances Nio’s vehicle profitability and cash flow,” as quoted by Seeking Alpha.
Three, Nio is still seeing solid sales growth. For July 2020, the company quadrupled its EV sales. Sales were up 322% to 3,533 vehicles – its second best month ever. For June 2020, the company sold 3,740 EVs for the month, up 179% year over year.