To The Moon

Nio stock is holding steady thanks to well-received June 2024 delivery numbers, but bearishness could soon be on the rise again.

Nio stock is holding steady thanks to well-received June 2024 delivery numbers, but bearishness could soon be on the rise again.

NIO continues to lose market share to competitors as closest peers demonstrate the ability to ramp up faster.The emergence of Xiaomi's electric vehicle poses a big threat to NIO's ET7 model.My target

NIO stock is falling after an analyst said to sell, citing a relative lack of new models and overall weakness in Chinese demand for cars. Investors in automotive stocks need to pay attention.Thursday, J.P. Morgan analyst Nick Lai downgraded shares of NIO to the equivalent of Sell from Hold, reducing his target for the stock price to $5 a share from $8.50. "We see downside to consensus volume/revenue estimates," wrote Lai, adding a "lack of new models relative to peers may further weigh on its stock performance.". He estimates 2024 sales will be about $10.1 billion. The consensus estimate compiled by FactSet is closer to $10.7 billion.NIO's U.S.-listed American depositary receipts were down 1.7% in premarket trading Friday at $5.75 apiece. Futures on the S&P 500 and Nasdaq Composite were both close to flat.With the downgrade, 65% of analysts covering NIO stock rate the shares at Buy, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%.

NIO's stock has underperformed against the broader market in recent months.Despite the rise in deliveries, NIO's bottom line continues to suffer.The company is likely to continue to burn cash at an un