Nio rallies 10.5% on back of Chinese official’s comments

  • NYSE:NIO gained 1.7% during Monday’s trading session.
  • Bank of America upgrades Nio’s stock to a buy and raises its price target.
  • Nio still has a number of bullish catalysts for the rest of 2022.

UPDATE: Nio stock spiked 10.5% on Tuesday to $16.10 after a prominent Chinese economic advisor spoke in support of foreign-listed tech stocks. Vice Premier Liu He, President Xi Jinping’s top economic official, said that after more than a year of high-profile public scrutiny of the business models, corporate stategies, consumer data collection and foreign listings of China’s largest tech companies, the central government was now aligning itself behind these same firms in order to stablize the economy. This may be a symptom of Monday’s economic report that revealed industrial output in China had fallen more than 11% YoY. NIO’s rally is additionally supported by a move to riskier stocks on Monday as the Nasdaq has rallied 1.4%.

NYSE:NIO kicked the week off on a bullish note after receiving a favorable price upgrade from a major financial name. On Monday, shares of Nio rose by 1.68% and closed the trading session at $14.55. This marks the fourth straight positive session for Nio as the popular Chinese EV maker seems to be turning a corner from its recent declines. It was a volatile start to the week as the broader markets traded red and green candles throughout the day. The Dow Jones was the only positive index, edging higher by just 26 basis points, while the S&P 500 and NASDAQ closed lower by 0.39% and 1.2% respectively.

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The main reason shares of Nio were on the rise again was due to a bullish upgrade from a Bank of America analyst. Ming Hsun Lee upgraded Nio from a Neutral to a Buy rating and raised the 12-month price target from $25 to $26 per share. Despite the recent downturn for Nio’s stock, Wall Street analysts remain mostly positive. According to TipRanks, of the 15 analysts who cover the stock, 14 have a Buy rating and one has a Hold rating, with a median price target of $40.61.

NIO stock price

NIO Stock

Lee cited several key catalysts for the rest of 2022 that should provide a positive impact to Nio’s sales. With the company recently selling its 500th vehicle in Norway, Nio is set to expand further into Europe by the end of the year. By that time, its second production facility should be up and running, showing that Nio is scaling to a global EV brand.

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