Nio Share Price Forecast April 2022 – Time to Buy NIO?
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Shares of Chinese multinational automobile manufacturer Nio (NYSE:NIO) are in the green today, after closing at $21.93 as of April 1st (19:59 EDT). Nio shares jumped more than 8% at one point after the automaker revealed that it delivered a record number of electric vehicles (EVs), totalling 25,768 units for the quarter ending March. While it’s only 3% higher compared to last quarter, it still beat expectations as it faced severe supply challenges.
Nio – Technical Analysis
Nio’s financial statement indicates a market cap of $36.292 billion with total assets worth $13.005 billion. Revenue for 2021 was at $5.60 billion with a profit margin of -29.43% compared to $2.36 billion in 2020.
Oscillators such as Relative Strength Index (14)(53.26), Stochastic %K (14, 3, 3)(80.25), Commodity Channel Index (20)(93.22), Average Directional Index (14)(17.50 ) and Awesome Oscillator(1.06) are neutral. Moving averages such as Exponential Moving Average (10)(21.12), Simple Moving Average (10)(21.40), Exponential Moving Average (20)(20.78), Simple Moving Average (20)(19.58) and Exponential Moving Average (30)(21.15) are indicating a buy action.
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Recent Developments
Nio released its first car, EP9 in 2016. It released the ES8 in 2017 and the ES6 in 2018. Nio announced $200 million in convertible notes, to be split between NIO and Tencent Holding, back in September 2019. It then raised $1,000,000,000 in private equity from CMG-SDIC Capital Management and Hefei City Construction, Investment Holding Group and Anhui Provincial Emerging Industry Investment.
Nio is starting to target several international markets, starting with Norway where it only delivers around 100 vehicles every month to the Scandinavian country. Nio intends to start selling its vehicles in Germany, the Netherlands, Sweden, and Denmark. Nio’s European operations can give it more recognition for its brand The company can also use domestic markets to generate better margins than its domestic market in the long term.
In the most recent company update, Nio confirmed the delay of the launch of its SUV ES7 by almost a month to late May. It joins the long list of Chinese automakers that have been delaying launches, largely because of the COVID-19 lockdown restrictions in the nation. On March 28th, the company began deliveries of its flagship sedan, ET7, delivering 163 vehicles through March 31. It has also received more than the 15000 orders received for ET7 as reported by the media.
Nio is also expected to unveil upgraded versions of existing EVs such as the EC6, ES8, and ES6, fitted with advanced digital cockpit hardware. Many analysts expect Nio’s monthly deliveries to rise steadily from the second quarter. Given its new product launches like the ET7, 10000 per unit is easy to achieve. Additionally, Nio’s battery-as-a-service (BaaS) program. Serves as a solid competitive advantage over its peers.
Should You Buy NIO Stock?
Investor interest in Nio shares picked up this week after investor Cathie Wood revealed a stake in the company. Investors have finally found valid reasons to be optimistic. However, there is always a threat of the shares getting delisted from US stock markets. The good news is that China is working with U.S. regulators in order to break the long-drawn deadlock on accounting regulations.
Nio investors shouldn’t ding the company due to the industry-wide problems almost all auto0makers are facing production problems. There’s a lot of time left for Nio to rebound from hurdles such as semiconductor and supply chain issues. Considering this now is a good time to buy Nio shares.
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