For a car company, even an electric vehicle stock like Nio (NYSE:NIO), bringing out new models is generally expected and usually treated well by investors as it’s a sign of ongoing operations. That’s about what happened today, with Nio shares up over 3% thanks to Nio’s plans to bring out two new models in the European market.
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One will be a “mass-market brand,” and the other a “smaller EV.” The smaller EV will come in at under $30,000, addressing a common lament that many prospective EV buyers have had – the things are just too expensive for regular people to buy.
Reports suggest that Nio’s new EV line is geared toward better competing with Tesla (NASDAQ:TSLA), which is the leader in the sector by a fairly wide margin. Tesla’s market position is requiring car companies to step up their game with more innovation or lower prices, and it looks like Nio is trying to thread those needles on the same strand.
Introducing Onvo
What exactly is “Onvo”? That’s a good question. It turns out that Onvo is the new sub-brand for Nio. While not too much is known about Onvo yet—basically, the website for Onvo has little more to say than “First model L60, stay tuned”—this isn’t such a bad thing. There is something to be said for anticipatory marketing, where advertisers try to build anticipation for a product by being comparatively vague about it at first.
Remember when “The Simpsons” first introduced Gabbo? They just said his name three times, and that was the entire ad. That got people paying attention, and these days, attention is capital. Meanwhile, reports note that Onvo’s management team will be formally introduced to the world on May 9.
What Is a Good Price for NIO Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on NIO stock based on seven Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 30.65% loss in its share price over the past year, the average NIO price target of $6.92 per share implies 20.66% upside potential.
