Nio (NYSE:NIO)

Nio has been under pressure over recent quarters due to the disruption caused by the COVID-19 resurgence in China, rivalry in China’s EV market, and the price war triggered by Tesla. Nio’s deliveries in the first quarter increased on a year-over basis but declined sequentially.

Additionally, deliveries grew over 31% year-over-year to 6,658 units in April but fell about 36% from March. Deliveries were impacted by the upgrade of Nio’s vehicles from its Nio Technology 1.0 platform to Nio Technology 2.0. Looking ahead, deliveries are expected to benefit from the launch of the new ES6 SUV and the ramp-up of EC7 SUV production on Nio’s new technology platform. Moreover, Nio’s battery-swapping network gives it an edge over its rivals.

Wall Street’s Moderate Buy consensus rating on Nio is based on six Buys and three Holds. The average price target of $14.92 implies nearly 87.7% upside.