The NIO has some powerful catalysts for this in 2022


Chinese manufacturer of high-end electric vehicles (EV). Nio (NYSE:NIO) did not have a smooth year in 2021. NIO shares were once traded at a high of $ 60, but today have fallen to $ 30. There was nothing wrong with the company, but the general mood of investors led to a sell-off. There are also several concerns related to Chinese regulations that have affected NIO stocks.

Source: Andy Feng /

It traded at $ 14 in July 2020 and doubled in October 2020. Shares then reached $ 54 in November 2020 and the first months of 2021 were the best days. However, the ups did not last long and stocks began to fall from March 2021. It reached $ 33 in May, rose to $ 53 in June 2021, and has since fallen back to a low of $ 30.

Nio has consistently impressed investors with solid quarterly supply figures. Despite increasing competition, Nio walks with pride and is on track to lead EV industry. I have always been a fan of NIO shares and I believe that in 2022 I could reach the highest value of all time.

The company has already started the year strongly. With that in mind, let’s look at two reasons to invest in NIO shares.

The future of the EV industry is bright

The global electric vehicle market is expected to reach $ 802.81 billion by 2027, at a growth rate of 22.6%. The highest contribution to industry is in the Asia-Pacific region, followed by Europe and North America. The Asia-Pacific market is expected to reach $ 357.81 billion by 2027 at a total annual growth rate (CAGR) of 20.1%, and North America is expected to reach $ 194.2 billion by 2027.

As countries continue to move towards fuel-efficient, low-emission vehicles, the demand for electric vehicles will only increase. Meanwhile, along with growing market demand, technological advances and government initiatives will boost the growth of electric vehicle manufacturers in the coming years.

Nio’s battery as a service model has an advantage here and could attract users looking for cheap EVs that promise high performance.

Exciting offer of models

Nio is launching the ET7 sedan this year, followed by the compact ET5 sedan. They are also speculating that we will see even more new vehicle models this year. There is a lot of enthusiasm around the ET7 and the car will soon enter the German market.

my InvestorPlace colleague David Moadel believes it is ET5 will boost Ni’s recovery.

The ET7 will be the first Nio model to be sold in Germany. The ES8 ESV is already on sale in neighboring Norway, and could soon make its way to Germany as well.

Nio saw great interest from several potential users, especially in European markets.

If the company introduces new models next year, it will be able to attract a larger customer base and increase revenue. Nio has already entered the Norwegian market and will soon plan to enter other European countries this year. The company has already doubled its production capacity at its plant in China to 240,000 vehicles per year. This will allow the company to reach its full potential, and margins are expected to rise soon after.

Bottom Line on NIO shares

In addition to strong operating numbers and impressive deliveries, Nio is working to expand its market, which will boost NIO shares. I believe Nio has the potential to beat competitors with its product line and battery as a service.

An HSBC analyst Yuqian Ding has raise the target price NIO stocks at $ 54 with a Buy rating after the company reported strong delivery numbers for December and announced new models at the NIO Day event. The analyst believes that new models could increase volume growth this year.

Nio has already laid the groundwork for 2022 and I believe it will report high revenue in quarterly results. This will help the recovery of NIO shares in the next two months.

Vandita Jadeja did not have (directly or indirectly) any positions in the securities mentioned in this article on the day of publication. The opinions expressed in this article are those of the author and are the subject of Guidelines for publication.

Vandita Jadeja is a CPA and freelance financial songwriter who enjoys reading and writing about stocks. He believes in shopping and holding on to long-term profits. Her knowledge of words and numbers helps her write a clear stock analysis.


Leave a Comment

error: Content is protected !!