Shares of Chinese electric vehicle manufacturer NIO (NYSE: NIO) A key analyst at Wall Street on Tuesday said the company could at least become the “next iconic auto brand” in China.
Is that true Let’s take a look
Does NIO compare with Tesla in China?
Dutsh Bank Analyst Edison UA Original Rs. On September 8, NIO’s coverage started with a rating and a price target of 24 24. In a new note on Sept. 29, the U.S. wrote that investors pushed their initial ratings, saying the company’s brand does not stretch the level of excitement and loyalty. Tesla And German luxury brands enjoy with Chinese customers.
U admits there is little truth in that. But, he said, NIO is still a new company, and he believes that understanding of its brand is moving in the right direction.
The UA said there is “compelling evidence” that a growing number of customers see NIO as a high-quality premium brand with best-in-class technology and customer service. He noted that 627% of NIO’s customers – high rates – were referred by other customers, and that more recent major studies have reported against major brands.
“Like [battery-electric vehicle] As adoption grows and word of mouth spreads, we believe that NIO can take a share of content in the premium segment, as consumers begin to understand the value and quality of its products and services.
NIO began shipping its latest model, the EC6 crossover, earlier this month. Image Source: NIO.
UU thinks that NIO may not be at the level of Tesla yet, it is the leading company of so-called “Fab Four” of top Chinese electric-vehicle manufacturers, which includes NIO, Expang, Li Auto Toe, And privately held WM motor. UI maintained its buy rating and its ડ 24 price target for NIO shares.
Could NIO really be the next iconic auto brand?
NIO has come a Long Way in the last year. The company has addressed quality concerns, including a costly recall, severe cash shortages, and a nationwide shutdown between the COVID-19 epidemic earlier this year. Now, he has plenty of cash in the bank and sales are growing – and there is a growing sense among auto toe investors that CEO William Bin Lee and his team have run the company in a very good direction.
NIO’s vehicles have sleek design, a long list of high-tech features, a good range and some sleek twists, including a fast-growing network of automated battery-swap stations that can “recharge” NIO in about 3 minutes – and batteries – the Hu-subscription service that Which reduces the initial cost of the purchase. The company has placed a heavy emphasis on customer service, moving beyond the usual auto toe-company experience with brick-and-mortar centers, intended as a gathering place for enthusiastic owners.
NIO’s automatic battery-swap stations can “recharge” the vehicle in about 3 minutes. Image Source: NIO.
Certainly, the NIO still has a long way to go. For starters, it still has to deliver more than 4,000 vehicles a month (although it can be found there in September.) It does not yet have its own factory and is not running – it pays other vehicle manufacturers to build its vehicles, if arrangements If nothing else, eat into its margins.
The result: there is risk, but good things are happening here
With all this said, I think auto investors are very fond of here. The NIO is still so small that it’s best to think of it as a speculative investment (in other words don’t load the boat). But I think the company has shown us enough with its progress over the last six or seven months, with a little bit of confidence that it will run well – and if it does, it should win a good share of China’s upscale EV market. That market will grow over the next few years.
