Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 6 Jan, 25 | NIO | Buy | USD 4.63 | USD 5.2 | USD 5.5 | Same day | 18.8% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China. It offers five and six-seater electric SUVs, as well as smart electric sedans. The company also offers power solutions, including Power Home, a home charging solution; Power Swap, a battery swapping service; Power Charger and Destination Charger; Power Mobile, a mobile charging service through charging vans; Power Map, an application that provides access to a network of public chargers and their real-time information; and One Click for Power valet service. In addition, it provides repair, maintenance, and bodywork services through its NIO service centers and authorized third-party service centers; statutory and third-party liability insurance, and vehicle damage insurance through third-party insurers; repair and routine maintenance; roadside assistance; courtesy vehicle services; data packages; and auto financing and financial leasing services. Further, the company involved in the provision of energy and service packages to its users; design and technology development activities; manufacture of e-powertrains, battery packs, and components; and sales and after sales management activities. Additionally, it offers NIO Certified, a used vehicle inspection, evaluation, acquisition, and sales service. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was incorporated in 2014 and is headquartered in Shanghai, China.
Cumulative Deliveries Milestone: The company reached 671,564 cumulative deliveries as of December 31, 2024, showcasing its growing footprint in the EV industry
Record Deliveries Growth: NIO achieved a 72.9% year-over-year increase in December 2024 deliveries and a 38.7% annual growth in total deliveries, reflecting robust demand and market expansion
Delayed Revenue from New Models: Deliveries of the flagship ET9 and firefly models are not expected until March 2025 and April 2025, respectively, which delays their contribution to revenue growth and market competitiveness.
Dependency on Fourth Quarter Performance: The fourth quarter accounted for 32.7% of total annual deliveries (72,689 out of 221,970), indicating a potential reliance on seasonal or year-end sales surges to achieve annual targets
Key investment risks for NIO include its heavy reliance on sustained delivery growth amidst intensifying competition in the global EV market and potential delays or execution challenges in launching and scaling new vehicle models like the ET9 and firefly.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 4.63 | 4.1 | 5.2 | 5.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
NIO Reports Record-High Deliveries for December, Q4, and Full Year 2024
NIO Inc. announced record-breaking delivery results for December, the fourth quarter, and the full year of 2024. The company delivered 31,138 vehicles in December 2024, marking a 72.9% year-over-year increase and achieving a new monthly high. These deliveries included 20,610 vehicles under its premium NIO brand and 10,528 vehicles from its family-oriented ONVO brand.
Quarterly and Annual Delivery Growth
The fourth quarter of 2024 witnessed a new quarterly record with 72,689 vehicles delivered, representing a 45.2% year-over-year growth. For the full year of 2024, NIO delivered 221,970 vehicles, reflecting a 38.7% increase compared to 2023. As of December 31, 2024, the company’s cumulative deliveries reached an impressive 671,564 vehicles, underscoring its expanding presence in the global EV market.
Launch of NIO ET9 Executive Flagship Sedan
During NIO Day 2024, the company introduced its latest innovation, the NIO ET9, an executive flagship smart electric sedan. The ET9 integrates advanced technological capabilities across 12 areas, delivering exceptional experiences in design, comfort, safety, intelligent systems, and driving performance. Deliveries of the ET9 are slated to commence in March 2025, further strengthening NIO’s position in the premium EV segment.
Introduction of Firefly High-End Compact EV Brand
At the same event, NIO officially launched firefly, a new high-end compact electric vehicle brand. Designed to embody the ethos of “freedom to glow,” firefly offers a thoughtfully crafted and intelligent driving experience. Leveraging NIO’s expertise in design, safety, and intelligent technologies, firefly is tailored to meet the needs of global consumers. The official release of the first firefly model is scheduled for April 2025, expanding NIO’s reach into the compact EV market.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on NIO Inc (NYSE: NIO) at the closing price of USD 4.63, as on January 03, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Auto Manufacturers
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| NIO Nio Inc Class A ADR |
0.14 3.54% | 3.94 | - | 434.78 | 0.14 | 5.89 | 0.96 | -0.6078 |
| TSLA Tesla Inc |
15.64 6.03% | 274.80 | 45.91 | 67.57 | 5.67 | 8.35 | 12.42 | 58.23 |
| TOYOF Toyota Motor Corp |
-0.5 2.78% | 17.50 | 8.97 | 9.44 | 0.0059 | 1.11 | 0.0097 | 0.05 |
| TM Toyota Motor Corporation ADR |
-2.01 1.14% | 174.52 | 8.87 | 9.34 | 0.0052 | 1.07 | 1.27 | 6.98 |
| BYDDY BYD Co Ltd ADR |
-2.47 2.43% | 98.99 | 22.64 | 15.60 | 0.17 | 4.62 | 1.08 | 16.52 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 03, 2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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