Nio stock price extended its downside on Monday, as it dropped to the lowest point since September 2024 as it registered its fifth successive loss. Nio has declined by 15 percent in the last five sessions, despite its strong December delivery figures. The stock is potentially primed for a stronger performance in 2025 as its cheaper models gather momentum.
Why I Am Upbeat About Nio Stock Price
The company closed last year down by about 40 percent, but impressively sold more than 20,000 units for eight successive months for the first time in its history. Nio sold 31,138 vehicles in December, crossing the 30k mark in monthly sales for the first time in its history.
The company’s CEO stated last year that it could break even if it maintains an average sales rate of 30,000 vehicles per month. However, its latest spike was largely driven by the uptick in sales of its chapest model, the Onvo L60, which sold 10,525 in its third month in the market. However, that also means the gross margins could still be a challenge.
The company sold a record-breaking 72,689 vehicles in the fourth quarter and sold 221,970 units for the full year, a 38.7% growth YoY. Nio expects to sell approximately 440,000 vehicles in 2025, nearly double its 2024 figures. It is counting on its cheaper models, the Onvo and Firefly to drive growth. The company targets to sell 50,000 units of the Onvo L60 in the first quarter of 2025.
Also, it expanded its market by entering the Middle East and North Africa (MENA) region in the last quarter of 2024, raising the prospect of hitting that target. As far as revenue goes, Nio’s battery swap business has proven a hit with customers and could bring in significant inflows. The above factors make a strong case for buying Nio stock during its current dip.
However, competition is heating up in the EV market, and that could lead to fierce price wars that could limit the company’s margins. That could limit upside for Nio stock price.
Nio Stock Price Prediction
The momentum on Nio stock price on the daily chart signals control by the sellers. Immediate support will likely be at $4.00, but a stronger downward momentum could breach that mark and send it to the second support at $3.90.
On the other hand, moving above $4.15 will signal a shift to the upside. In that case, Nio could move higher and find the first resistance at $4.22. The downside narrative will be invalid if the price breaks above that level. Furthermore, that could lead to more gains and drive the stock to the second resistance at $4.30.
The post Nio Stock Price On A Losing Streak, But Here’s Why It’s A Good Buy appeared first in UK on InvestingCube.