"The tariff-driven market volatility has been rough on shares of Chinese electric vehicle (EV) maker Nio Inc. ( NYSE: NIO), which in April fell to a multiyear low of $3.02. Shares rebounded afterward. They are now up 63.8% year to date, after a 3.7% rise in the past week on news of renewed investor optimism due to government support measures for China's EV industry and on supply chain improvements."
"From a stock performance standpoint, Nio has been a tale of two stories. When shares debuted on the New York Stock Exchange on Sept. 12, 2018, at $9.90, they struggled to build momentum. Not until the summer of 2020 did the stock begin to surge, gaining over 810% from June 26, 2020, to Feb. 9, 2021, when the stock hit its all-time high of $62.84. Shares have fallen considerably since then, but the long-term outlook remains strong."
"There are some encouraging tailwinds for shareholders, though. The Chinese carmaker's high-performance models, which feature a +600-mile range, have caught the eye of vehicle enthusiasts and investors, while addressing range anxiety issues by creating battery swap technology as a supplement to charging. Nio is a leading electric vehicle manufacturer in China and has been expanding its presence internationally."
Tariff-driven volatility pushed Nio shares to a multiyear low of $3.02 in April, followed by a recovery that leaves the stock up 63.8% year to date and 68.4% higher than six months ago. Recent gains follow government support measures for China's EV industry and supply-chain improvements. Analyst sentiment remains cautious: fewer than half of 25 analysts recommend buying, with a mean price target of $6.81 and a high target of $9.03. Nio's +600-mile high-performance models and battery-swap technology address range anxiety while the company expands domestically and internationally. Historical volatility includes an 810% surge from mid-2020 to early 2021.
Read at 24/7 Wall St.
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