“Buy the dip!” came the cry from Mizuho Securities when asked about electric vehicle stock Nio (NASDAQ:NIO). But investors are frantically selling off, with Nio down over 4.5% in Tuesday afternoon’s trading thanks to a new report from Bank of America. Analysts with Bank of America Securities dropped Nio down to Neutral thanks to one major point, or rather, a lack of one major point. Specifically, new models, or that there weren’t going to be any for at least the first half of the year.
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That lack is likely to drag down Nio’s sales figures for the first six months and put it at a serious handicap against the sheer bulk of competitors in the field. Worse yet, reports note, Nio might have to drop prices on its current models, and augment its marketing spend just to get the word out about upcoming models that we won’t see for some time. That includes the upcoming ET9, which will sell for $112,000 and offer 600kW charging speeds. However, deliveries on that model won’t hit until sometime in 2025.
A Welcome Development for Wary Consumers
The question, however, is whether this is a buying opportunity in the making. While there will be no new models in the first half, there are some models set to come. There’s the E19, as noted previously, but there’s also the Nio Alps, which should start delivering in 2024’s second half. The Alps is an SUV that will run between $28,000 and just over $42,000. Meanwhile, a smaller car known as Firefly will take on the under-$28,000 market. That should be a welcome development for wary consumers looking for a deal in the face of high prices on nearly everything else.
What is the Target Price for Nio?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NIO stock based on six Buys and four Holds assigned in the past three months, as indicated by the graphic below. After a 32.92% loss in its share price over the past year, the average NIO price target of $11.07 per share implies 46.33% upside potential.
