Buy NIO Stock at the Lows and Don’t Sell It at All

It’s fair to say that China based electric vehicle manufacturer Nio (NYSE: NIO ) isn’t a darling of the financial markets now. Yet, at least one expert on Wall Street has set a lofty price target for NIO stock. Besides, after viewing Nio’s EV delivery stats, you’ll wonder why the share price isn’t much higher than it is today.

Nio has come a long way since early 2020, when it felt like the world was imploding. Nio’s financial and operational metrics were dismal. Now, Nio’s turnaround is truly impressive, and investors can apply a “buy low” strategy – but they can replace the “sell high” part with “don’t sell your Nio shares at all.” A Stunning Price Target for NIO Stock For the long term, there are identifiable positive catalysts that could boost Nio’s financials.

For one thing, the automaker got a massive, $2.2 billion capital injection from Abu Dhabi, United Arab Emirates based CYVN Investments RSC Ltd. Furthermore, Nio reportedly unveiled its “executive flagship” electric sedan , known as the ET9. Nio touted the ET9’s innovative technology features, and deliveries of this EV model are expected to start by 2025’s first quarter.

Morgan Stanley analyst Tim Hsiao seemed to be quite impressed with Nio’s feature rich ET9 sedan. Apparently, Hsiao liked what he saw at the most recent NIO Day event. According to the Morgan Stanley analyst, Nio “ flexed its technology muscle in different aspects, reaping some of its R&D investments over the past few years.” Again, Nio is in a much better position than it was in early 2020.

Still, Hsiao’s optimistic share price objective might startle you. He reiterated his “overweight” rating on NIO stock and assigned it a price target of $18.70. Nio’s Delivery Data Are Irrefutable I’m not quite as optimistic as Hsiao is, but I can certainly see the bullish argument. I already mentioned a few positive points about Nio, and I haven’t even addressed the biggest pillar of the bull case yet.

Specifically, Nio’s vehicle delivery growth has been excellent, especially considering China’s ongoing economic challenges. When you see the statistics, you’ll surely want to buy NIO stock at its current price. First of all, Nio’s full year 2023 EV deliveries increased 30.7% year over year. Moreover, Nio’s vehicle deliveries grew 25% YOY in the three months ending December 2023.

Along with all of that, the company’s December 2023 EV deliveries rose 13.9% YOY. Do these data points justify a NIO stock price target of $18.70? I feel that investors shouldn’t get too far ahead of themselves. For the time being, getting the Nio share price back to double digits (i.e., $10 or higher) is a worthy and reasonable objective.

Apply a ‘Set It and Forget It’ Policy With NIO Stock Nio’s upcoming ET9 sedan model could be a game changer. InvestorPlace contributor Chris MacDonald dished out the details of this feature rich EV model, and it will be interesting to see if the ET9 is a blockbuster success in China. Meanwhile, Nio’s aforementioned vehicle delivery data can’t be disputed.

The numbers don’t lie, and if NIO stock is down, that’s not a problem but only an opportunity. Consequently, investors should consider buying some Nio shares and holding them for at least a year. On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.

The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines ..