- NYSE: NIO fell by 0.70% during Wednesday’s trading session.
- CLSA analyst Soobin Park cuts Nio’s price target.
- Nio rivals XPeng and Li Auto continue to expand their businesses.
NYSE: NIO cooled off on Wednesday as the broader markets pulled back after a hot start to the week. Shares of Nio dipped by 0.70% and closed the trading session at $25.61. Nio’s stock soared on Tuesday after the company announced that it would be releasing its new ES7 SUV model later this year. Markets took a breather on Wednesday, undecided about a direction to take. The NASDAQ fell by 0.11% and the Dow Jones shed 54 basis points for minimal losses. Meanwhile the benchmark S&P 500 showed an incremental gain adding 0.09% during a rather uninspiring day on the markets.
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A Wall Street analyst has cut their price target for Nio’s stock yet remains bullish on its long-term prospects. Soobin Park of CLSA has revised her price target for Nio from $60 to $35 given the recent downturn of the stock. She does, however, continue to have a buy rating for the stock, as her price target revision has just taken into account that shares are currently trading at a lower price. Nio’s analysts remain bullish on the stock for 2022, but Park’s downgrade of her price target could be a sign of things to come as we approach the company’s quarterly earnings call later this month.
NIO stock price
Nio’s closest domestic rivals XPeng (NYSE: XPEV) and Li Auto (NASDAQ: LI) have been working hard to expand their production as well. Last week, XPeng announced it will be expanding to two new European markets in Sweden and the Netherlands during the first quarter of this year. Meanwhile Li Auto has just purchased land in the Chongqing province of China to build its third production facility in the country.
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