NIO (NYSE: NIO) witnessed a 2% decline in its stock value on Wednesday following Bank of America’s decision to downgrade the Chinese electric vehicle (EV) manufacturer’s rating to “neutral.”
The bank expressed concerns over NIO’s limited introduction of new models in the first half of the year, prompting expectations of increased marketing expenditures.
However, Mizuho Securities offered a contrasting perspective, advising investors to “buy the dip.” This optimistic outlook halted the slide in NIO shares overnight, providing a potential counterpoint to Bank of America’s cautious stance.
The electric vehicle (EV) market is becoming increasingly competitive as Chinese manufacturers explore international markets. Nio, among the most proactive, is extending its battery swap technology to Europe, aiming to maintain a customer’s driving range in as little as 3 minutes. The company is also working on establishing a dealer network in Europe, anticipating the launch of two new product lines within the following year. In addition, Nio recently introduced the ET9, an ultra-luxury vehicle, further expanding its product offerings.
Meanwhile, the electric vehicle (EV) maker Shanghai headquarters is grappling with slower sales, leading to a series of layoffs at its Shanghai headquarters. However, the company secured $2.2 billion in fresh investment from Abu Dhabi to support its efforts in expanding exports. Nio is also considering entering the U.S. market in 2025.
NIO (NYSE: NIO) has shifted its focus to its two recently introduced product lines, Alps and Firefly, which are priced starting at $25,000. The company is actively working to secure control over its supply chain to achieve this cost and mitigate losses.
Peter Williams, a financial writer with over five years of experience, specializes in covering stock market movements, bond markets, commodities, and macroeconomic trends.
