Will Nios stock reach 5 following a twofold increase in Q2 deliveries
In 2024, the electric vehicle (EV) industry finds itself deep in what many term the ‘EV winter,’ a prolonged downturn that has persisted for over a year. Even Tesla Motors (NASDAQ: TSLA), led by Elon Musk, struggled to stay profitable despite record deliveries at the close of 2023 and its pivot towards branding as a robotics and artificial intelligence (AI) company.
Amidst this challenging landscape, Nio (NYSE: NIO), the Chinese EV manufacturer, delivered a surprise boost of optimism with its recent sales figures. As of July 1, Nio reported delivering 21,209 vehicles in June and a total of 57,373 vehicles in the second quarter of 2024. These figures mark significant improvements, showing a 98% increase in June deliveries compared to the same month in 2023, and a remarkable 143.9% rise in Q2 year-over-year.
Despite these gains, Nio’s stock has not escaped the broader industry slump of 2024. Since the beginning of the year, the company has seen its stock price plummet by 50.59%, reflecting the challenging market conditions. However, the recent delivery report sparked some optimism, nudging Nio’s shares up by 4.57% in pre-market trading on Monday, bringing the stock price to $4.35.
Looking ahead, analysts, before the delivery figures were released, had forecasted a potential for Nio’s stock to exceed $6 over the next 12 months. This projection could see further bullish sentiment with the latest positive developments factored in.
Despite these positive signs, Nio’s shares face an uphill battle to maintain their gains and reverse the longer-term downtrend. Technical analysis from TradingView indicates a predominantly negative sentiment (‘sell’ or ‘strong sell’), although recent oscillators suggest a short-term ‘buy’ signal amid fluctuating market conditions.
In conclusion, while Nio’s recent delivery performance has injected optimism into a beleaguered EV market, the road to recovery remains challenging amidst ongoing market pressures and fluctuating investor sentiment.
