Markets.com Logo
euEnglish
LoginSign Up

Can Nio shares deliver on the 2020 promise?

Jan 18, 2021
3 min read
Table of Contents

    Shares in Nio had a spectacular 2020 – but can the stock keep on rallying in 2021?

    Citigroup doesn’t think so. It’s cut the stock to ‘neutral’ warning that it may be the big threat to Tesla that many think the Shanghai-EV company is thought to be.

    At the weekend Nio unveiled a new luxury saloon (sedan) called the ET7 and larger volume battery pack. Shares leapt as much as 14% on Monday and the market cap of the company now stands at over $100bn. But Citigroup cautioned the vehicle is “good but not enough to make any critical changes from Tesla’s challenge”. However, despite the downgrade Citi analysts did raise their price target to $68.30 from a previous forecast of $46.40.

    The ET7 was unveiled on Saturday at the annual ‘Nio Day’ event in Chengdu. Prices will start at $69k excluding any subsidies and marks the company’s clearest threat yet to the Tesla Model 3. However, it was the new more powerful 150kwh battery pack that will give Nio vehicles a claimed range of 625 miles that Wedbush analyst Dan Ives said was the ‘star of the show’. This prompted Bank of America and Deutsche Bank to raise their price targets on the stock to $70, while JPMorgan upped theirs to a street-high $75.

    Despite this, Citi remains downbeat on the ET7, arguing that the new model will have sales of no more than 4,000 a month. Progress will also be stymied by future updates to the Model S Tesla. Citi analyst Jeff Chung lowered his 2021 shipment forecast to 82,000 from 92,000, while the 2022 forecast was cut from 162,000 to 144,000.

    Competition in the EV space is clearly heating up. Whilst analysts are unsure about Nio’s ability to test Tesla, there are signs in Europe that ought to worry Elon Musk fans. Tesla’s Model 3 was the fourth-best selling pure EV in Europe in November, with Renault, VW and Hyundai outstripping the company for sales in the continent. November say a 198% rise in hybrid and pure EV registrations vs a 14% decline overall for new car registrations. But while the market is expanding, local OEMs are holding the line against Tesla despite all the hype.

    Nio shares in New York trade about +3% higher around $63.50 after the first half hour of the US session on Wednesday.

    Nio sentiment analysis

    Is Nio a buy?


    Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

    Written by
    SHARE

    Markets

    • Palladium - Cash

      chartpng

      --

      -2.08%
    • EUR/USD

      chartpng

      --

      -0.13%
    • Cotton

      chartpng

      --

      -0.37%
    • AUD/USD

      chartpng

      --

      -0.29%
    • Santander

      chartpng

      --

      -1.88%
    • Apple.svg

      Apple

      chartpng

      --

      -0.69%
    • easyJet

      chartpng

      --

      2.16%
    • VIXX

      chartpng

      --

      3.76%
    • Silver

      chartpng

      --

      -1.17%
    Table of Contents

      Related Articles

      Bank of England BoE

      Week Ahead: Interest Rate Decisions from BoE in Focus

      Several key economic releases are scheduled for the week of 4 – 8 August 2025. On Monday, 4 August at 0630 GMT, Switzerland will release its CPI m/m data, with June showing a +0.2% rise and July expected to remain steady.

      Tommy Yap|in 2 days

      US Envoy Meets Netanyahu Amid Rising International Pressure on Gaza Aid

      US Envoy Witkowsky engages in talks with Netanyahu about Gaza's future amid increasing global pressure. Stalled negotiations and efforts to recognize a Palestinian state dominate the scene.

      Noah Lee|about 5 hours ago

      Trump Escalates Criticism of Powell After Fed Rate Decision

      President Trump escalates his criticism of Fed Chairman Powell, expressing dissatisfaction with the decision to hold interest rates steady and warning of economic repercussions.

      Emma Rose|about 6 hours ago
      Markets.com Logo
      google playapp storeweb tradertradingView

      Contact Us

      support@markets.com+12845680155

      Markets

      • Forex
      • Shares
      • Commodities
      • Indices
      • Crypto
      • ETFs
      • Bonds

      Trading

      • Trading Tools
      • Platform
      • Web Platform
      • App
      • TradingView
      • MT4
      • MT5
      • CFD Trading
      • CFD Asset List
      • Trading Info
      • Trading Conditions
      • Trading Hours
      • Trading Calculators
      • Economic Calendar

      Learn

      • News
      • Trading Basics
      • Glossary
      • Webinars
      • Traders' Clinic
      • Education Centre

      About

      • Why markets.com
      • Global Offering
      • Our Group
      • Careers
      • FAQs
      • Legal Pack
      • Safety Online
      • Complaints
      • Contact Support
      • Help Centre
      • Sitemap
      • Cookie Disclosure
      • Awards and Media

      Promo

      • Gold Festival
      • Crypto Trading
      • marketsClub
      • Welcome Bonus
      • Loyal Bonus
      • Referral Bonus

      Partnership

      • Affiliation
      • IB

      Follow us on

      • Facebook
      • Instagram
      • Twitter
      • Youtube
      • Linkedin
      • Threads
      • Tiktok

      Listed on

      • 2023 Best Trading Platform Middle East - International Business Magazine
      • 2023 Best Trading Conditions Broker - Forexing.com
      • 2023 Most Trusted Forex Broker - Forexing.com
      • 2023 Most Transparent Broker - AllForexBonus.com
      • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
      • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
      • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
      • 2024 Leading CFD Broker Africa - Brands Review Magazine
      • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
      • 2024 Best Mobile Trading App MENA - Brands Review Magazine
      • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
      • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
      LegalLegal PackCookie DisclosureSafety Online

      Payment
      Methods

      mastercardvisanetellerskrillwire transferzotapay
      The markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

      High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

      For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

      Markets.com operates through the following subsidiaries:

      Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

      Markets International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

      Close
      Close

      set cookie

      set cookie

      We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.