It's time to step to the sidelines on Chinese electric vehicle maker Nio after its latest quarter, according to JPMorgan. Analyst Nick Lai downgraded Nio to neutral from overweight, saying it will be increasingly challenging for the electric vehicle maker to deliver on high expectations. He said that the firm's fourth-quarter results were a miss because of vehicle margin contraction.
The analyst's new December-2023 price target is $10, down from $14, which implies upside of roughly 13%. The stock fell about 1% in Thursday premarket trading. To be sure, the analyst expects there will be greater volume momentum in the second half of 2023 because of new vehicle models, according to the note. Still, the broader EV industry will have to deal with greater pricing pressure after Tesla's recent price cuts.
Same with Tesla. The competition is far greater than reflected in its share price.
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Source: cleantechnica - 🏆 565. / 51 Read more »