Nio (NYSE:NIO) stock has experienced a significant decline of about 52% year-to-date. This Chinese EV maker’s shares are now considered penny stocks, trading at lower prices due to competitive pressures and pricing challenges. Despite this drop, Nio stock may continue to face pressure in 2024.
Nio’s management remains positive and anticipates improvements in vehicle margins in the coming quarters. They aim to achieve double-digit margins by Q2 and further enhancements in Q3 and Q4. However, Nio acknowledges the ongoing competition in the EV industry as a potential obstacle.
Investor sentiment towards Nio remains negative, with a decrease in the number of portfolios holding the stock in the last 30 days. Overall, only 3.9% of the portfolios monitored by TipRanks have invested in Nio stock.
Analysts have differing opinions on Nio stock. Citi analyst Jeff Chung is bullish, citing improved sales momentum and new model launches. Meanwhile, Barclays analyst Jiong Shao is bearish, pointing to higher expenses and lower selling prices. Wall Street analysts have a Moderate Buy consensus rating for Nio stock, with a price target of $6.19, suggesting a 41% upside potential.
In conclusion, Nio stock faces challenges from competition that may impact its financial performance and share price in the short term. Investors can utilize tools like TipRanks’ penny stock screener to identify top-rated penny stocks.