Nio Inc (NYSE: NIO) is pushing further to the upside in premarket on Wednesday after a JPMorgan analyst removed his bear rating from shares of the electric vehicles company.
Nio stock receives an upgrade
Nick Lai expects battery as a service (BAAS) strategy of the EV firm to be a meaningful tailwind for its share price.
He upgraded Nio stock this morning to “neutral” and said:
By successfully lifting the take rate, NIO broadens its TAM and lowers entry price point for mass BEV segment of below RMB 300K for two important volume models – the ES6 and ET5 (accounting for 75% of sales in 2023.
Nio Inc is scheduled for a soft launch of its first mass market vehicle under a new brand name in the coming months.
Watch here: https://www.youtube.com/embed/BJVWOnXbyzs?feature=oembed
Nio reports a 135% increase in monthly deliveries
Nick Lai expects $NIO to benefit from China’s policy to lift auto demand as well.
The EV company based out of Shanghai will increase its monthly unit sales from 15,000 in the second quarter to about 23,000 in Q4, he added.
His bullish call on Nio stock arrives shortly after the New York listed firm said it delivered 15,620 vehicles in April – up a whopping 135% versus a year ago.
The electric vehicles firm is expected to report its quarterly earnings in mid-June. Consensus is for it to lose 31 cents a share versus 42 cents per share last year. Note that William Li – the chief executive of Nio Inc was recently named “EV person of the year” as Invezz reported here.
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