• NYSE: NIO added 14.30% on Tuesday after the BofA upgrade to Buy.
  • 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 price built on to its recent recovery rally and added 14.30% on Tuesday, closing the day near the highest level since May 5 at $16.69. The Chinese Electric Vehicle (EV) maker exploded after Bank of America (BofA) analyst Ming Hsun Lee upgraded to Buy from Neutral with a $26.00 per share price target, up from $25.00. The upgrade was on the back of the company’s Improving sales, better margins expected in the second half of the year, and attractive valuations. Further, the risk-on market mood amid Shanghai’s reopening optimism also collaborated to the upswing in the NIO stock price. Markets shrugged off Fed Chair Jerome Powell’s comments at the WSJ event.

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.

Stay up to speed with hot stocks' news!

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.

Previous updates

Update: NIO settled at $16.63 per share on Tuesday, up 14.30%. Wall Street managed to post substantial gains, following the tepid recovery of the previous session. The Dow Jones Industrial Average gained 431 points, while the S&P 500 edged 1.80% higher. The Nasdaq Composite was the best performer, adding 2.76%. Stocks were backed by upbeat US data, as Retail Sales rose by more than anticipated in April. Industrial Production also provided a positive surprise. Meanwhile, speculative interest paid little attention to US Federal Reserve Chair Jerome Powell. Speaking at a WSJ event, Powell remarked that the central bank is comfortable with the current pace of 50 bps rate hikes, although he added that they would change it one way or the other. Above all, Powell reiterated that policymakers' main focus is to tame inflation.

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%.

Like this article? Help us with some feedback by answering this survey:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD recovers modestly, trades above 1.0400

EUR/USD recovers modestly, trades above 1.0400

EUR/USD has managed to stage a modest rebound in the American session and climbed above 1.0400. Despite the risk-averse market environment, falling US Treasury bond yields after the latest inflation data seem to be limiting the greenback's gains for the time being.


GBP/USD rises above 1.2150 as dollar retreats

GBP/USD rises above 1.2150 as dollar retreats

Gold has gained traction and turned positive on the day above 1.2150. With the US T-bond yields falling sharply on soft inflation data, the US Dollar Index turned south and erased a large portion of its daily gains, helping GBP/USD push higher.


Gold rebounds toward $1,820 on falling yields

Gold rebounds toward $1,820 on falling yields

Gold has turned north and advanced to the $1,820 area after having dropped toward $1,800 earlier in the day. The benchmark 10-year US T-bond yield is down more than 2% on the day near 3% after the latest US data, fueling XAU/USD's upside.

Gold News

Breaking: Ethereum price tanks below $1,000

Breaking: Ethereum price tanks below $1,000

Ethereum price has breached a critical area of support over the past few hours, dipping below $1,000. The Fibonacci retracement indicator shows that ETH lacks any significant support levels that could keep prices at bay.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!