Earlier this year, NIO and Xpeng were called Tesla’s best rivals for global market share, and in a new update, one firm has upgraded NIO’s price target and rating.
Shares of NIO rose up to 4% on Tuesday after Citi changed its rating on the stock to “buy” from “neutral,” as well as changing the price target from $57.60 to $58.30, according to Markets Insider.
In its decision, Citi cited electric vehicle (EV) demand in China, also saying that it estimates 2.52 million EV units will be sold in China in 2021 – way up from previous estimates, in which the firm predicted 1.79 million units sold.
NIO Q1 2021 Beats Expectations, EV Deliveries Up 422%Â Year-Over-Year https://t.co/POTiq6gbym
— TeslaNorth.com (@RealTeslaNorth) April 30, 2021
The news also comes despite lower overall sales for NIO in May, likely due to the global semiconductor chip shortage.
In spite of the low May sales, Citi says it believes NIO will see a Q2 increase in sales which will help the company’s revenue and market share in the second half of 2021.
In a statement Tuesday regarding delivery estimates, NIO said “Based on the current production and delivery plan, the company will be able to accelerate the delivery in June to make up for the delays from May.” NIO continued, “The company maintains and reiterates the delivery guidance of 21,000 to 22,000 vehicles in the second quarter of 2021.”
At the time of writing, NIO’s shares were trading for $41.84, having risen 8.35% since Tuesday’s open, following the long holiday weekend.
