Why Nio Stock is Trading Higher?
The Chinese Electric Vehicle manufacturer Nio Inc. (NIO) has witnessed steady gains in its stock price over the past month. The stock is up around 37% and closed 2% higher on June 14 at $46.55. Nio has had a series of good news coming its way, with the latest being that construction of its second factory has begun, and the plant is expected to start manufacturing in the third quarter of 2022. The news was confirmed by CEO William Li at a recent event in China. (See Nio stock analysis on TipRanks)  Once the factory starts running, it will propel Nios available production capacity to about 20,000 vehicles per month, from a maximum of 10,000 currently. Additionally, the company provided its May delivery update stating that deliveries climbed 95.3% year-over-year to 6,711 vehicles, and cumulative deliveries of the ES8, ES6, and EC6 as of May 31, reached 109,514 year-to-date. The companys May deliveries were adversely impacted for several days due to the volatility of semiconductor supply and certain logistical adjustments. However, the company has stuck to its delivery guidance of 21,000  22,000 vehicles in the second quarter of 2021, which Nio expects to achieve by accelerating deliveries in June. Analysts View  Yesterday, Mizuho Securities analyst Vijay Rakesh reiterated a Buy rating on the stock with a price target of $65, implying 43.8% upside potential to current levels. In his latest Global EV report, Rakesh stated, We see NIOs value leadership in the premium EV segment with solid battery technology and ADAS roadmaps as drivers of growth. Its core business, focused in domestic China, is another advantage with regulatory support and market familiarity. Global expansion is in the works and we believe will become a meaningful contributor to future growth.  Consensus among analysts is a Strong Buy based on 8 unanimous Buys. The NIO average analyst price target stands at $61.91 and implies upside potential of 37% to current levels. Shares have gained 7% over the past six months. Related News:  General Electric and Safran to Develop New Jet Engine, Extend CFM Partnership to 2050  Magnachip Receives Hostile Bid from Cornucopia; Shares Jump 12%  Nvidia Buys DeepMap, Enhance Autonomous Vehicle Mapping Precision