Can NIO Stock Rebound 100% In 2023?

Nio Inc, a Chinese manufacturer of electric vehicles, closed trading on the stock market on November 21 at $10.02 +$0.45 (4.30%). However, the company’s share price has decreased by a further -$1.88 (-15.83%) over the course of the last five trading sessions.

Nio’s price has increased by $0.57 (6.03%) in the past month, and a number of industry professionals believe that it has the potential to even double over the course of the next year. This is in spite of Nio’s recent bad performance.

Notably, research analyst Edison Yu from Deutsche Bank maintained a Buy recommendation on the stock while raising the price objective for Nio from $20 to $21 due to the company’s powerful branding, unique ecosystem, and fresh product lineup. Nio recorded healthy sales for the third quarter, and CEO Yu says the company is getting ready for a busy finish to the year on the production front.

“If you take a look at the extremely significant Q4 guide that they published, it demonstrates that. After being affected by Covid in October, your monthly production might theoretically increase to 20,000 units by December, representing a doubling in only a few short months. I believe it to be the most important factor, as the demand for new models is really robust. In the coming months, things will start to become significantly clearer for us.
The price of NIO has been fluctuating between $9.03 and $12.38 over the course of the past month, and it is presently trading close to the lower end of that range. Nio exhibits a pattern that is indicative of a good setup, since recent price activity has been rather stable and the volatility of the asset has decreased.

Above the present price, there is very little resistance, and the first important barrier can be found at $17.88 from a trend line in the weekly time frame. On the other hand, support can be found at $9.24 from a horizontal line in the daily time frame. At the time of publication, NIO is trading higher than its simple moving average (SMA) for the past 20 days, but it is trading lower than its SMA for the past 50 days and its SMA for the past 200 days.

The majority of the indicators on Nio’s 1-day technical analysis (TA) gauges point to a bearish outlook. At 15, the emotion indicator indicates that a sale should be made, while the moving averages (MA) indicate that a sale should be considered “strong” at 14. According to the information gathered from the market analytics site TradingView on November 22, the oscillators show a “neutral” feeling when they are at a level of eight, and the majority (8) of them are located in the “neutral” zone.

It is interesting to note that the stock is rated as a “strong buy” by experts on Wall Street. Nine of the twelve analysts who have covered the stock over the past three months have recommended buying Nio, while only three of those analysts have recommended holding the stock. NIO stock is expected to reach an average price objective of $21.15 during the next year, representing an increase of 111% from its most recent price of $10.02. It is important to note that even the lowest price target is currently more than what Nio’s price is. It is important to note that Yu believes that Nio may have passed the worst of its problems; the research analyst emphasized once more the significance of December sales in a research study that was released on November 21:

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“The most important thing to keep an eye on will be sales for the month of December, as NIO will probably need to deliver something close to 20,000 devices in volume to demonstrate that execution is truly getting better.”

In a research paper that was published on Monday, the analyst stated that despite the continuation of supply-chain issues and manufacturing delays, he anticipates a turnaround beginning in the early part of 2023 “supported by the government’s gradual pivot away from COVID zero.” This prediction was made in light of the fact that the supply-chain issues and manufacturing delays are expected to continue.