Posted 2/23/2024, 12:25:00 PM
Nio Stock Drops Over 6% as J.P. Morgan Downgrades on Competition and New Model Concerns
- Nio's stock dropped over 6% after J.P. Morgan downgraded it to underweight due to concerns about increasing competition and lack of new models
- The analyst cut Nio's price target by 41% to $5, expecting further downside
- Nio only has one new mass market EV model launching this year, in Q4, while competitors like XPeng and BYD are launching multiple models
- The analyst predicts smartphone maker Xiaomi entering the EV market will introduce "significant competition"
- Despite discounts from competitors, Nio has been cutting costs and reducing sales discounts to protect margins