CFO Steven Feng of Nio Inc. (NYSE:NIO) is confident that the company will achieve its 2023 sales goal of 250,000 electric vehicles, Bloomberg reported. Feng said that new model launches, and the expansion of Nio’s charging and battery-swapping network will help drive sales.
Additionally, the China Passenger Car Association’s report disclosed that sales of new energy vehicles rose 23% in the first two months of 2023. This points to an encouraging picture of EV demand.
Meanwhile, the China EV market is facing intense competition due to a price war that has been triggered by Tesla (TSLA). In October 2022, Tesla first lowered the price of its Model 3 sedan and Model Y SUV in order to expand sales. The move was soon followed by several domestic and international brands, including BYD Co. and Ford Motors (F), among others.
Though lower prices might hurt the company’s margins, falling lithium prices and Nio’s efforts to ramp up production might support performance in the near term.
Is NIO a Buy, Sell, or Hold?
With six Buys and four Holds, Nio has a Moderate Buy consensus rating. The average price target of $14.67 implies 58.3% upside from current levels. Shares are down 3.7% year-to-date.