To The Moon

NIO stock has been stuck in reverse gear the past few months and the selling could continue into 2025, Goldman Sachs analysts said Monday.The Chinese electric-vehicle maker's American depositary receipts are down 28% since the beginning of October and 47% in 2024. Increased competition and lower prices have hurt the Chinese EV sector -- rivals Li Auto and XPeng have fallen 40% and 18%, respectively, this year. In contrast, Tesla stock is up 42% in 2024, through Friday.Goldman's analysts don't see the picture getting any better for NIO next year. They downgraded the stock to Sell from Neutral in a note Monday. Their new $3.90 12-month price target suggests that the ADRs could fall 19% from Friday's closing price.However, stronger government policy support is one reason Goldman analysts could turn more positive on the stock. Hou currently expects NIO to sell 337,000 units in 2025, compared to the company's guidance of 443,000 to 449,000 units.

NIO stock has been stuck in reverse gear the past few months and the selling could continue into 2025, Goldman Sachs analysts said Monday.The Chinese electric-vehicle maker's American depositary receipts are down 28% since the beginning of October and 47% in 2024. Increased competition and lower prices have hurt the Chinese EV sector -- rivals Li Auto and XPeng have fallen 40% and 18%, respectively, this year. In contrast, Tesla stock is up 42% in 2024, through Friday.Goldman's analysts don't see the picture getting any better for NIO next year. They downgraded the stock to Sell from Neutral in a note Monday. Their new $3.90 12-month price target suggests that the ADRs could fall 19% from Friday's closing price.However, stronger government policy support is one reason Goldman analysts could turn more positive on the stock. Hou currently expects NIO to sell 337,000 units in 2025, compared to the company's guidance of 443,000 to 449,000 units.