NIO (NYSE:NIO) Stock Breaks Out: Will it Hit New Highs?
9:13 am Tuesday, June 22nd, 2021
Nowadays, there are plenty of options for investors who are looking to invest in the electric vehicle manufacturing industry. One of the more interesting options in this context is the Chinese electric vehicle manufacturing company NIO (NYSE:NIO).
It is one of the major players in the Chinese electric vehicle industry and has often been called the ‘Tesla of China’. In recent times, the stock has performed better than Tesla and there are experts who believe that the NIO stock remains undervalued. Hence, it might be a good idea for investors to start looking into NIO a bit more closely.
First and foremost, it is necessary to remember that the company operates in the biggest electric vehicle market in the world. On top of that, NIO currently commands a market valuation of only $74 billion, which is dwarfed by Tesla’s valuation of $580 billion.
As a result, it could be argued that the upside in the NIO stock could be considered if it continues to grow. An analyst has suggested that the stock could eventually hit $100 a share. It has been argued that NIO’s move to get into battery swapping in order to control its costs could prove to be a considerable boost for the company.
On the other hand, it is believed that the Chinese government is now firmly in NIO’s corner and if that is the case then it is a massive boost for the company.
NIO is also taking small steps towards becoming a global player and soon it is going to start selling it vehicles in Norway. Although it is true that the holy grail for NIO remains in North America, it is expected to take time before it can make a mark in that market. That said, NIO has the necessary brand presence and technological wherewithal to make it work in the North American market. It may take a long time, but the analyst suggests that there could be considerable upside in the NIO stock.
