Andy Feng
NIO Inc. (NYSE:NIO) just made an announcement that said that the electric-vehicle company was curtailing its delivery forecast for 1Q-24 amid a soft demand environment in the company’s core market China.
While slowing growth is obviously a big challenge for NIO, and an obstacle for price appreciation for NIO’s stock, I think that the electric-vehicle company unduly suffers from a painful change in sentiment towards EV businesses.
NIO’s stock just made new lows, but the valuation is now at its most compelling point ever, in my view. It seems that investors are overreacting to the company’s forecast and NIO should profit from a rebound in deliveries later this year.
My Rating History
I modified my stock classification for NIO to Buy last December due to a strategic investment deal between NIO and CYVN Holdings. In 2023, the holding company chose to invest $2.2 billion into NIO and bankroll the electric-vehicle…
