Citi analyst slashes NIO stock price target by 53% just 11 days after valuing it at $87

Written by Cláudio Afonso | | LinkedIn | Twitter

Citi analyst Jeff Chung lowered on Tuesday the firm’s price target on NIO shares to $41.10 while maintaining a Buy rating. On June 10, the analyst had reiterated the $87 price target enhancing that the EV maker is about to ramp up the production now that its F1 (factory number one) is back to pre-Covid levels plus the opening of NEO Park (F2) in the third quarter of the year. The analyst also updated the firm’s price target on XPeng and LI Auto raising volume forecasts for China’s leading electric vehicles makers.

As intially reported by The Fly, the analyst commented: “Neighborhood electric vehicle buying decisions increasingly hinge on the attractive value proposition of full lifecycle costs virus interior space, a factor that is overlooked by capital markets”.

“In a scenario of both gasoline and lithium-carbonate prices shooting up by another 25%-50% year-over-year into 2023, full lifecycle ownership costs would be 36% lower for electric vehicles than for internal combustion engines, says the analyst,” he added.


Citi price targets on NIO stock

DateCiti Price target on NIO stock
June 30, 2021Raised the price target from $58 to $72
November, 2021Raised the price target from $70 to $87
February 28, 2022Reiterated the $87 price target
June 10, 2022Reiterated the $87 price target
June 21, 2022Lowered from $87 to $41.10

NIO Europe Vice-President Hui Zhang was present on Monday at the Swedish Summit in Stockholm ahead of the expansion of the electric vehicle maker to the Nordic country. In an interview to the financial newspaper Dagens Industri, Zhang was asked about NIO‘s competition in Sweden with Tesla and the Swedish Polestar already established.

Dagens Industri’s journalist asked “How do you view the competition with electric cars [companies] like Polestar and Tesla? What’s your part in this?”.

NIO Europe VP answered, “In fact, we are competing with ourselves. We are a company with many new business models including battery swap and battery as a service (BaaS) which demand a lot of work from ourselves”.

“We have also our strategy both short-term and long-term. But for the Swedish market we really have a long-term commitment. As I mentioned, we’re going to have our ecosystem implemented here and that’s why I say the competitions is rather ourselves. How we can manage well under a difficult period especially in Europe with some political challenges as well. To implement the strategy, what we made for the long-term really into the execution,” he added.

On Monday, NIO announced opened the orders of the 2022 ES8, ES6, and EC6 models. The upgraded versions were unveiled last week during NIO’s product launch event with the arrival time to NIO Houses expected for July and the beginning of the deliveries for August.

Last week, the company hosted a product launch event where it launched a new medium five-seater SUV with an NT2.0 platform, NIO ES7. The model was rated a five-star safety of C-NCAP and Euro NCAP tests, a Cd of 0.263 and a tarting price of RMB 468,000 ($69,700 USD).

On the first day of June, NIO reported 7,024 vehicles delivered in May showing an increase year-over-year and also from the previous month, when delivered 5,074 units. On NIO App, William Li answered to customers and enthusiasts saying “Thank you all! We will continue to work hard in June”.

Written by Cláudio Afonso | | LinkedIn | Twitter