Wall Street Predicts NIO Stock Price to Gain Over +130% in the Next 12 Months

 Key takeaways

• Nio Inc. (NYSE:NIO) stock surges +11% after Chinese government reveals new economic policy designed to stimulate growth
• Previoisly, NIO had been in a -89% downtrend since forming its all-time high in 2021, but there is now renewed optimism that NIO could recover in the coming months
• The CoinCodex price prediction algorithm forecasts a +156% gain for NIO over the next year, which would take the stock back above the $20 price level

NIO stock surges after China commits to raising its fiscal debt ratio with new government bonds

Nio Inc. (NYSE:NIO) hit a high of $8.11 on 24th October following a +11% rally from the previous day’s low.

Nio, a Chinese electric vehicle (EV) manufacturer, has gained in value after Xi Jinping took decisive action in combating China’s recent economic problems. As reported by Nasdaq, Jinping announced that China will issue new government bonds to fuel growth, with the aim of hitting its 5% annual target before the end of the year.

NIO earnings reports have shown a loss per share since Q1 2021

Previously, NIO had been in a 2-month downtrend following some positive price action between June and August. During this time, Nio upgraded manufacturing processes for one of its key factories in order to boost productive efficiency. The company was some way short of its annual deliveries target of 250,000 at the time, which caused bearish Wall Street predictions for its Q2 earnings report.

After losing -22% of its stock value in the hours after the earnings report was released, NIO gradually retraced to a support level that was formed in June. The recent surge from this price level may indicate that the downtrend is over, as NIO is expected to benefit directly from China’s plan to raise the fiscal debt ratio in a bid to stimulate its economy.

1-year price prediction: Algorithm forecasts +156% increase for NIO

After climbing +11% from its low on 23rd October, NIO is expected to cool off over the coming weeks as it prepares for a longer term break-out that could see it reclaim key price ranges during a major trend reversal.

NIO had declined -89.5% from its 2021 all-time high to its recent lows in 2023. Buoyed by a fresh bullish catalyst due to policy changes from the Chinese government, it now looks as though NIO could begin to recapture some of this lost value.

Within 3 months, NIO is forecasted to increase +34 to reclaim the $10 level as it clambers back towards its 2023 high of $16.16. The 2023 high will form a resistance level as NIO journeys towards $20 in 2024. The algorithm expects NIO to have reached $20.81 by this time next year, which would be a +156% gain from the current price.

1-year price prediction for NIO

Bottom line: NIO set to recover from recent bear trend and begin to climb back towards its former high

NIO continues to dominate the EV market in China and recent growth initiatives from the Chinese government could help to spark sustained optimism in the company’s earnings potential. Previously, NIO had reported a loss per share of $0.51 in Q3 and $0.42 in Q2, falling below Wall Street’s expectations in what has been a disappointing year for the company.

New manufacturing systems and a stimulated Chinese economy could help NIO to produce more EVs over the coming months, which in turn is expected to benefit the company’s stock price. As things stand, the CoinCodex price prediction algorithm forecasts a key trend reversal for NIO that would take it back above $20 within the next year. If you are looking to invest in NIO, make sure to check out our NIO stock buying guide.

NIO stock price YTD