NIO stock is trading up at $12.29 as of 01:32 PM EDT.
Shares of Nio (NYSE:NIO) should rise this week because of what Chinese President Xi Jinping said about how important it is to support technology. With shares of Nio (NIO) trading close to their 52-week lows, positive analysis from CFRA Research is also boosting investor sentiment.
Analyst Jian Xiong Lim and his colleagues say that adding three SUVs and two sedans to Nio’s (NIO) electric vehicle lineup in 2022 will help the company keep up its strong revenue growth and increase its operating leverage.
Nio (NYSE:NIO) should be able to grow by going after the mass market if its operating leverage gets better. The government also encourages people to switch batteries, which helps Nio’s (NIO) Battery as a Service. Subsidies for customers also help boost sales. Nio (NYSE:NIO) is also thought to have a head start because it has set up domestic swap stations in China.
Regarding success: “Due to substantial R&D expenditures (13% of sales in 2021) on autonomous driving and battery technology to remain competitive, as well as investments in battery swap/charging stations, we anticipate NIO to continue operating in the red in 2022–2023. Given the decision to keep car prices the same, higher supply chain and input costs will further hinder NIO’s capacity to increase profitability. On the other hand, we anticipate a moderate net loss due to increased operating leverage.”
Nio stock outlook
After losing almost 11% last week, Nio (NIO) gained 3.15% in premarket trade on Monday to reach $12.12. Nio (NYSE:NIO) stock has dropped more than 40% in the last month, outperforming the S&P 500 index’s 14% drop. As of 11:25 a.m. ET, Nio shares are down 2.5% on the day. At the day’s lows, the stock was down as much as 7%. Nio has debuted several new models and is increasing its supplies to Europe. Its expansion strategies would probably be severely impacted by a global recession. The company’s net loss grew to $412 million in the second quarter because its operating costs went up. Investors know that if consumer demand drops because of a weakening economy or a market slump, it will make it harder for a company to make money.
Why Nio Stock Fell Once More Earlier Today
Featured Image – Megapixl © Timonschneider
Author Jowi Kwasu 
