Morgan Stanley analyst Tim Hsiao reiterated an Overweight rating and $66.00 price target on NIO. The analyst enhances the great deliveries numbers and the upgrade on the ES8, ES6 and EC6 Models this year.
NIO announced yesterday the December 2021 Deliveries numbers of 10,489 vehicles – up 49.7% Year over Year – and the second month in a row above 10k.
Tim Hsiao commented: “10,489 cars were delivered in December, bringing NIO’s full-year vehicle sales to 91,429 in 2021, up 109.1% YoY: December deliveries consisted of 2,782 ES8, 4,939 ES6,and 2,768 EC6. 4Q21 deliveries reached 25,034 units, largely flat QoQ with similar model mix of ES8 and ES6/EC6 despite greater MoM volatility.Large-scale rollout in 2022: ET7 delivery will start in March. Investors are focusing more on robust ET5 order inflow – NIO gauges that monthly sales volume will gradually reach 10k units after deliveries start in September. ET5’s pricing – Rmb328k or Rmb258k with Battery as a Service (BaaS) – looks competitive vs. luxury brands’ models, such as BMW 3-series and Mercedes C class. Aside from the ET7 and ET5 launches, NIO will have another model hit the market around mid-2022. NIO also plans to upgrade tech features of its current lineup – ES8, ES6, EC6 – likely in 1H22, to underpin its volume sales before the contribution of new models kicks in.“
Last Thursday, December 30th, NIO was the most traded stock of the Market with 130.37 Million of shares traded – the highest Volume on a day since March 26th and one of the best days of 2021. It’s more than twice the 50.2M that change hands on a typical day.
Shares of NIO closed at $31.68 last Friday, down -2.28% on the day after the 14.8% rise from Wednesday’s close at $28.25.