Nio Stock Has 10% Upside, According to 1 Wall Street Analyst

Core Viewpoint - Nio's stock performance does not reflect its progress, with a significant price target cut by J.P. Morgan's analyst, indicating concerns about the company's growth trajectory [1][2]. Company Performance - J.P. Morgan analyst Nick Lai has reduced Nio's price target from $7 to$4.70, suggesting a hold on shares but not recommending additional purchases at this time [1]. - Despite a nearly 40% increase in vehicle deliveries for 2024 compared to 2023, the sales are primarily from high-end luxury models, which limits market potential [3]. Market Strategy - Nio launched a lower-priced brand, Onvo, last year, but it accounted for only about one-third of deliveries in December and January, indicating challenges in expanding mass market appeal [4]. - A new budget brand, Firefly, is set to launch in April, which may help Nio tap into a broader market segment [5]. Future Outlook - While it may be premature to invest in Nio stock, long-term investors could benefit from the anticipated growth of lower-priced brands like Onvo and Firefly over the next year [5].