Nio (NYSE:NIO) plans to expand its presence in Europe instead of participating in the price war in China. Nio is a Chinese company that produces and markets high-end smart electric vehicles.
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The business is reportedly working on two projects related to expanding into Europe. Nio plans to introduce entry-level vehicles for the European market under the Firefly project. These cars are expected to cost around £23,500 and be produced in China. Additionally, the price range for the vehicles in the Alps project will be pitched between Firefly and Nio.
According to Bloomberg, Nio is still having trouble establishing itself in the European market. Nio President Qin Lihong was quoted in the article as saying, “We underestimated the innovation and uncertainties of all processes, including permission, labor acquisition, a lot of matters.”
Moving on, Nio wants to concentrate on expanding its network of battery swapping and charging stations in order to combat the price war started by Tesla (TSLA) in China.
Nio’s goal to double annual sales to 250,000 EVs in 2023 as a result of the company’s new product introductions and extensive vehicle lineup seems impressive. However, the company’s plans to not cut prices might lead to Nio losing market share to its peers who are offering cheaper vehicles.
Is NIO a Buy, Sell, or Hold?
NIO stock has received six Buy and three Hold recommendations for a Moderate Buy consensus rating. Further, analysts’ average price target of $14.92 implies 51.8% upside potential over the next 12 months.
