Nio stock rises on a major milestone as Wall Street ‘strong EV leader in making’

NIO (NIO) announced major production milestones as Morgan Stanley turned more quickly on the electric-carmaker. Nio stock gained momentum.


The company said on Thursday that Nio’s 5,000th electric vehicle was taken off the production line at a manufacturing plant in Hefei.

Reports in local Chinese media said that for the first time Nio has exceeded 5,000 units per month.

Morgan Stanley achieved milestone a day after its earnings forecast and so-called price target Tesla (TSLA) of China. The firm said that Hike was primarily driven by better Q3 delivery and more visible development outlooks.

Morgan Stanley analyst Tim Hisia wrote, “The pace of progress of NIO in achieving its strategic and investment ambitions is surpassing our expectations on all fronts.” His research note was titled “A Strong EVE Leader in the Making.”

The firm expects the China EV competition to intensify in 2021. But it believes that the instigators and the new entrants will struggle to replicate the diverse strategies of the NIO.

“We are looking to strengthen our pole positions for Nio through improved volume scale, good spectrum of model / market coverage, self-driving technology and diversification into power solutions.”

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Specifically, the analyst said that sales of the Nio EV should be stronger in 2021 for the rest of 2020. He noted the strong-to-expected demand and strong backlog for the Nio’s EC6 electric coupe SUV, which is a potential rival for the Model Y.

And on January 9, Hsiao hopes to launch a lower-priced fourth model on the annual Nio Day, joining the EC6 and older ES6 and ES8 electric SUVs.

He raised his price target on Nio stock to 33 from 20.50.

Nio stock, electric car stock

Today, Nio’s stock rose 1.5% to 27.95 in the stock market. The Nio stock has been extended from a 15.55 buy point to an August 25 breakout, meaning the shares are not in the buy range.

Tesla stock rose 0.2% to 407 in Thursday’s premarket. In other electric car stocks, Nikola (NKLA) increased by 1.2%, Lee auto (LI) 1.9% advanced and Xpeng Motors (XPEV) increased by 0.5%.

Morgan Stanley’s note came more sharply on Nio stock two weeks after JP Morgan. The firm also cited the EC6 backlog and the introduction of the fourth model.

Find Aparna Narayanan on Twitter @IBD_Aparna.

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