Nio Share Price Forecast November 2021 – Time to Buy NIO?
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Shares of Chinese EV maker NIO (NYSE: NIO) are in the red today, closing at $41.42 as of November 24th (19:50 EST). The shares have been driven by both negative and positive factors recently. With Nio Day 2021 about to take place in less than a few weeks, investors are looking for new catalysts.
Nio – Technical Analysis
According to Nio’s financial statement, the market cap is at $68.883 billion with total assets worth $10.679 billion. Revenue for Nio in 2020 was at $2.36 billion with a profit margin of -34.51% compared to $1.13 billion in 2019.
Oscillators for Nio such as Stochastic RSI Fast (3, 3, 14, 14)(50.40), Williams Percent Range (14)(−41.79), Bull Bear Power (1.88) and Ultimate Oscillator (7, 14, 28) (49.26) are neutral. Moving averages such as Exponential Moving Average (10)(40.82), Simple Moving Average (10)(40.78), Exponential Moving Average (20)(40.53), Simple Moving Average (20)(41.02) and Exponential Moving Average (30)(40.16) are indicating a buy action.
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Recent Developments
Nio has been experiencing volatility due to several factors. The company’s American depositary shares have swung from the high 30s to the low 40s multiple times. Some of the bullishness from investors have come due to the excitement created by some other EV manufacturers in both China and the United States. In mid-December, Nio Day 2021 is scheduled to happen. The company announced the launch of its first sedan, the ET7 luxury EV at last year’s Nio Day. Some other announcements include a new 150-kilowatt-hour battery pack that provides 600 miles on a single charge.
Nio, unlike its peers such as Lucid and Rivian, has sold nearly 150,000 electric SUVs in China and is looking to expand beyond that. It has already appointed a team in Norway and made its first shipment earlier in 2021. The company will have the capacity to manufacture at least 240,000 vehicles per year once construction is complete this spring. Current market demand for EVs should support Nio’s added production. Nio has continued to deliver some impressive results via its September and Q3 delivery update. It delivered 10,628 vehicles globally, an all-time high monthly figure in September, which represents a a 125% increase year-on-year. It also indicated that Nio had completed 24,439 vehicle deliveries in Q3 in total.
Should You Buy NIO Shares?
Nio shares have a lot of potential and in current price levels of $43, they can present a real buying opportunity. One factor investors should consider is the competition. As a larger, worldwide emphasis is placed on climate change, EV markets are naturally going to be more and more lucrative. But the entry of competitors could see NIO get pushed out of this space.
With China EV sales expected to increase by more than 30% to reach 1.8 million in 2021, this presents a great opportunity for Nio to expand. The primary growth drivers for Nio remain new and upcoming EVs and battery services. Its innovative subscription plan for batteries allow users to buy Nio EVs without batteries for a lower price and “rent” batteries for a monthly fee. This is further helped by Nio’s June expansion of battery swap stations and 2.9 million battery swaps. Considering all of this, now looks like a good time to buy Nio shares and hold them for the long term.
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