Is NIO Inc (NYSE:NIO) Stock Ready To Hit New Highs This Month?
5:01 pm Friday, July 09th, 2021
It goes without saying that there are plenty of investors who are highly interested in the electric vehicle sector and more importantly, nowadays there are many options other than Tesla. One of the stocks that could be worth looking into at this point in time is that of the Chinese electric vehicle manufacturer NIO Inc (NYSE:NIO).
The stock actually declined over the past week due to fears about an economic slowdown. Moreover, intermittent lockdowns in different nations and the decline in pent-up demand for electric vehicles are two other important factors in this regard. However, many investors could still look at this decline in the NIO stock as an opportunity.
It should be noted that experts believe that the slowdown in economic growth is going to help in lowering the bond yields and hence, help in sustaining a higher valuation for the NIO stock. In addition to that, the slowdown is not expected to be strong enough to have a major effect on spending from consumers.
Hence, there is expectation that over the course of the next one year, NIO is going to generate considerable growth on the back of strength in deliveries and expansion of its business. Strong deliveries are expected to be a function of a larger trend of preference for electric vehicles and on the other hand lower bond yields are going to help with the expansion. These are two major factor that could support a higher NIO stock price and hence, it could be argued that an opportunity might be there in the stock at this point.
