Shares of Chinese electric vehicle manufacturer (EV) NIO (NYSE: NIO) traded lower on Tuesday amid a broad sell-off of EV stocks and despite good sales and upgrade results from longtime Wall Street skeptic.
At 10:30 a.m. EST today, U.S. NIO depository shares fell about 6.4 percent from Monday’s closing price.
NIO was just one of a group of EV shares that traded lower on Tuesday. Most of them have had strong bulls in recent months; the retreat is no surprise, and at least for now, it probably shouldn’t bother long-term car investors.
But in the absence of pressure in the sector, NIO stocks could otherwise rise with two good news. First, he reported on his November deliveries ahead of Tuesday̵
The latest NIO results have won a long-time Wall Street skeptic. In a new note on Tuesday morning, Goldman Sachs analyst Fei Fang upgraded NIO to neutral with a price tag of $ 59, saying that NIO’s success in increasing its vehicle range, battery program as a service and the positive effects of renewed Chinese government incentives seem to keep its sales growing for some time. time.
Upgrading to neutral may not sound like much, but Fang had previously valued NIO shares as a sale, with a target price of only $ 7.70. This is a big change for Goldman.
The NIO also said it was trying to accelerate the increase in production capacity it planned to implement in early 2021.
This increase in capacity will allow the NIO to produce about 7,500 vehicles per month. The company last upgraded its production line in September, increasing monthly output from about 4,000 to about 5,000, but demand is already outpacing that increase.
CEO William Bin Lee said during a revenue call last month that he hoped there would be an increase by the end of January; NIO said today that it is now aiming for its production line and suppliers to reach that speed before the end of December.