NIO Inc. (NIO): Can a boost in EV sales also boost the price?

NIO is to release the Q4 and full 2022 unaudited financial reports on March 1, 2023.
Vehicle Sales dropped 35% in January.

NIO Inc., a multinational Electronic Vehicle manufacturer ranked 6th in China, was founded in 2014 and later rebranded and relaunched in 2017. Having headquarters in Shanghai, the company is well known for its revolutionary approach toward batteries. They design, manufacture and sell EVs for China, Europe and the United States.

In mid-2022, NIO achieved the milestone of delivering 218,000 th vehicles. The company considers batteries the most expensive, and charging is restricted. To solve these, they make their cars with removable batteries, which can be swapped. They also have plans to set up multiple swapping stations. In the summer of 2022, they opened their 1,000th swapping station in China.

This swapping mechanism could allow them to sell cars without batteries, and buyers can rent batteries from these stations. This would greatly reduce the cost of the vehicle. The company announced that they would be releasing the Q4 report and full 2022 financial unaudited report on March 1, 2023.

Slower sales in January 2023 raised concern about February. The Chinese Association of Automobile Manufacturers reported a fall of 35% in January Year-over-Year to 1.65 million units; the pace slowed from December 2022. Experts say that slower sales could be due to holidays in December and January, hampering production. Expecting that there will be growth in February. Although they never touched the slower economic conditions worldwide or the post-pandemic effect in China.

At the time of writing, it was trading at $10.19, with a slight drop of 2.95%. The previous open was $10.50, and the open at $10.46. The fifty-two-week range is from $8.38 to $24.79, indicating that the current rate is nearer to the lower end of the spectrum. With a strong market cap of $17.404 billion, the volume is 38.20 million shares, and the average volume is 45.31 million.

The price target is expected to be $21.75, with a 102.6% upside; the highest it could go to is $31.30, while the lowest could be $10.40. Analysts have given a 2.75 rating for moderate buy. Short interest seems healthy, as 4.73% of shares sold short. The profit margin is negative 25.27%; the operating margin is negative 26.33%. Revenue is strong at $43.11 billion, revenue per share is $26.49, while the quarterly year-on-year revenue growth is 32.60%.

The chart shows that the price is slowly recovering from its 52-week low and is still quite close to the point. If the Q4 and financial reports come out positive, it might cross the $11.85 mark, and then the price would consolidate between that and the supply zone.

An increase in sales or other positive news can drive the rally. The price might even go on to break the supply zone. If the reports did not receive a positive welcome, They might touch the demand zone. However, the possibility of breaking it south is debatable.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing