NIO – Weekly Chart
NIO stock has found itself in a range between $3.70 and $7 in the US ADR. The $3.70 support is closest but an earnings surprise could see some sharp upward momentum.
In January, CNBC reported that sales of all-electric vehicles and hybrid models made up 20% of all new car and truck sales for the first time in 2024. Motor Intelligence said that more than 3.2 million electrified vehicles were sold last year, including 1.9 million hybrid vehicles and 1.3 all-electric vehicles for the US market. Chinese EV sales also saw a bumper year and that helped NIO to a record annual sales number, delivering 72,689 vehicles, for a 45.2% increase year-over-year.
At NIO Day in December 2024, the company launched ET9, its flagship electric car that showcases advanced technology in multiple areas, including intelligent driving. NIO plans to start deliveries of the ET9 by the end of March. Additionally, the company introduced FIREFLY as its new high-end electric car brand, which is expected to be launched in April 2025. Both of these new models could see another strong year in sales for NIO and the stock price may see a recovery with an earnings surprise.
Analysts expect Nio to post a loss of 34 cents per share vs. a 39-cent loss a year ago, according to FactSet. They also see revenue at the company rising 17.9% to $2.802 billion.
Nio continues to work on a turnaround strategy with improving sales and more affordable vehicles. Some analysts say Nio’s venture into mass-market and budget brands may hurt its premium image, but the company is set on targeting a “broader global market” with its new models.
Europe has pushed back on Chinese vehicles saturating the market and Donald Trump is unleashing heavy tariffs, so it is not a great environment to see global sales growth.
Analysts will be looking to see positive free cash flow and effective working capital management from the company as it seeks to create a stable foundation. In the previous quarter, Nio’s CEO, William Li, told investors on the company’s earnings call that he expects the company to break even on a full-year basis in 2026. That means the company’s upcoming earnings will have to show a continued trend of narrowing losses, driven by rising shipments and continued spending cuts.
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