For contrarians, the significant decline of Chinese EV manufacturer NIO (NYSE:NIO) seemingly presents a bargain opportunity. In recent years, China has become a true powerhouse in the electric-powered mobility game. Still, recent developments suggest that there are rising concerns in Asia’s economic crown jewel. As a result, investors need to think extremely carefully about the supposedly cheap automaker. Regrettably, the evidence forces me to lean bearish on NIO stock.
NIO Stock Attracts High-Level Contrarians
Last month, analysts at JPMorgan Chase (NYSE:JPM) issued a rather blunt recommendation to investors, urging them to sell NIO stock. Specifically, Nick YC Lai cut his rating to Underweight from Neutral while slashing his price target by 41% to $5. Previously, the expert carried a price target of $8.50.
Raising eyebrows even further, Lai admitted that his downgrade was “admittedly a late one,” given the…
