Shares of Chinese electric vehicle (EV) maker NIO Inc. (NYSE:NIO) surged almost 8.94% by market close, Monday. The stock was one of the top-gaining tech stocks on Monday.
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Chinese stocks such as Li Auto (NASDAQ:LI) and Xpeng (NYSE:XPEV) were also not far behind NIO on Monday. The reopening in China after years of shutdowns is lifting sentiments for Chinese auto stocks globally.
2022 had been a low year for Chinese automakers because of supply snags, COVID-19-related disruptions, crackdowns on tech companies, the semiconductor war with the U.S., and national and global macroeconomic issues.
Nio on the Way to a Rebound
Nonetheless, the ongoing celebrations for the Chinese New Year seem to be bringing much-needed optimism to auto stocks such as NIO.
Moreover, recent developments at NIO have also ensured solid gains for the company. Last week, NIO inked a five-year strategic deal with battery manufacturing company CATL to accelerate battery innovation and boost EV adoption through an advanced battery supply system. Apart from improving battery supply chains, the agreement will allow NIO to expand its footprint into new markets and enhance technological cooperation in new projects.
NIO also announced earlier this month that it had delivered 40,052 vehicles in the fourth quarter of 2022, which was 60% higher than the prior year.
In December last year, Morgan Stanley (NYSE:MS) analyst Tim Hsiao reiterated a Buy rating on NIO stock despite the company’s weak Q4 earnings guidance. The analyst expects the company to shift its focus back to increasing store traffic and order intake in the near future.
What is the Prediction for NIO Stock?
11 Wall Street analysts are bullish on NIO stock, with a Buy rating. On the other hand, four analysts prefer to be on the sidelines currently, with a Hold rating. The consensus rating, thus, is a Moderate Buy. The average price target of $16.62 indicates an upside of 37.8% over the course of the next 12 months.
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