Shares of EV maker Nio (NYSE:NIO) are lower today, which can be attributed to analyst downgrades. Nick Lai of JP Morgan changed his rating from Buy to Hold while assigning a price target of $10 per share. For reference, his previous price target was $14. In addition, Jiong Shao of Barclays also downgraded the stock from Buy to Hold with a price target of $10, which was lowered from $18.
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Both analysts are concerned about the company’s margins, as vehicle margin plunged from 20.9% in Q4 2021 to 6.8% in Q4 2022. Indeed, the price war started by Tesla’s (NASDAQ:TSLA) price cuts is likely to make margin expansion more difficult. In addition, it doesn’t appear that Nio’s aggressive spending on expansion plans will slow down anytime soon.
Overall, Wall Street analysts have a consensus price target of $17.69 on NIO stock, implying over 104% upside potential, as indicated by the graphic above.
