Wall Street Forecasts These 3 Chinese Electric Vehicle Stocks Will Rally by 25% or More

: NIO | NIO Inc. ADR News, Ratings, and Charts

NIO – The Chinese EV industry is experiencing rapid growth driven by supportive government policies and growing demand for EVs amid rising sustainability concerns worldwide. Consequently, Wall Street analysts expect Chinese electric vehicle stocks NIO Inc. (NIO), Li Auto (LI), and Niu Technologies (NIU) to rally by 25% or more in price in the near term. Read on.

The electric vehicles (EV) market is expanding, fueled by robust demand for clean energy automobiles amid emission reduction initiatives worldwide. China is one of the fastest-growing EV markets, representing 44% of the world’s  EVs. The Chinese government has been instrumental in boosting the nation’s EV production and sales. In addition to  providing subsidies to encourage the adoption of EVs, the government has mandated that a certain percent of all vehicles sold by car manufacturers each year be battery powered. The government’s goal is to have 40% of all car sales in China be EVs by 2030.

The Chinese EV market is witnessing rapid development, with several new companies venturing into this space. Analysts expect the Chinese EV market to register a 31% CAGR between 2021 – 2026.

Given this backdrop, Wall Street analysts expect fundamentally sound Chinese EV stocks NIO Inc. (NIO), Li Auto Inc. (LI), and Niu Technologies (NIU) to rally by 25% or more in the near term.

Click here to checkout our Electric Vehicle Industry Report for 2021

NIO Inc. (NIO)

Based in Shanghai, NIO is a manufacturer and seller of smart electric vehicles with innovations such as autonomous driving and artificial intelligence. The company sells its products in Mainland China, Hong Kong, the United States, the United Kingdom, and Germany primarily. It also provides energy and service packages to its customers.

NIO delivered 7,931 vehicles in July 2021, representing an impressive 124.5% year-over-year growth. The company’s cumulative deliveries of its  ES8, ES6, and EC6 vehicles hit  125,528 in July.

NIO entered a long-term manufacturing agreement with Jianghuai Automobile Group Co., Ltd., and Jianglai Advanced Manufacturing Technology (Anhui) Co., Ltd on May 24. Under the agreement, which is valid through  May 2024, NIO’s vehicle production is expected to increase by 240,000 units annually.

For the fiscal second quarter, ended June 30, NIO’s revenues stood at RMB8.45 billion ($1.31 billion), representing a 127.2% increase year-over-year. NIO’s vehicle sales increased 127% year-over-year to RMB7.91 billion ($1.23 billion). Its gross profit grew 402.7% from its  year-ago value to RMB1.57 billion ($243.77 million).

The Street expects NIO’s revenues to rise 109.8% year-over-year to $1.45 billion in the current quarter, ending September 2021. Its EPS is expected to grow 47.3% in the current quarter versus  the same period last year. Shares of NIO have gained 171.2% over the past year.

All seven Wall Street analysts that rated NIO have rated it Buy. The stock’s $66.01 median price target indicates a potential 73.3% upside from its last closing price of $38.10. The 12-month price targets range from a low of $57.00 to a high of $72.00.

Li Auto Inc. (LI)

LI, through its subsidiaries, designs, develops, manufactures, and sells smart electric sport utility vehicles (SUVs) in China. It concentrates its in-house development efforts on its proprietary range extension system, next-generation electric vehicle technology, and smart vehicle solutions. LI is based in Beijing.

LI’s overall deliveries were up 11.4% month-over-month and 251.3% year-over-year in July 2021, representing a remarkable rate of growth. The company delivered 8,589 Li ONEs in July, crossing the 8,000-vehicle milestone for the first time while hitting a new record. LI plans to launch a series of major OTA upgrades to enhance its product offering by the end of this year.

LI’s vehicle sales increased 311.8% year-over-year to RMB3.46 billion ($528.66 million) in the fiscal first quarter, ended March 31. Its total revenue grew 319.8% from its year-ago value to RMB3.58 billion ($545.68 million). Its gross profit stood at RMB616.73 million ($94.13 million), up 802.9% from the same period last year. And its cash and cash equivalents balance rose 671.4% from the prior-year quarter to RMB8.18 billion ($1.25 billion) over this period.

The $3.27 billion consensus revenue estimate of for its fiscal period ending December 2021 indicates a 123.2% increase year-over-year. The Street expects the company’s EPS to rise 38.3% year-over-year in the current year. Over the past year, LI gained 81.8% to close yesterday’s trading session at $28.03.

The six Wall Street analysts that rated LI rated it Buy. The $44.75 median price target indicates a potential 59.7% upside from its last closing price. The 12-month price targets range from a low of $37.00 to a high of $62.00.

Niu Technologies (NIU)

NIU in Beijing designs, manufactures, and sells smart electric scooters in China. Its NIU application synchronizes with its smart e-scooters and communicates with its cloud system. The company enables users to receive real-time information relating to their smart e-scooters through its application.

On April 7, NIU announced the launch of five new electric urban mobility vehicles for China and the global markets. The products are designed to offer a more comfortable riding experience to its customers. These advanced product additions should allow the company to strengthen its position in the micro-mobility space.

NIU’s revenues increased 46.5% year-over-year to RMB944.75 million ($146.32 million) in its  fiscal first second ended June 30. Its operating income grew 76.4% from its  year-ago value to RMB99.33 million ($15.38 million), while its non-GAAP net income improved 53.4% year-over-year to RMB103.97 million ($16.10 million). The company’s net income per ADS increased 56.2% year-over-year to RMB1.14 ($ 0.18).

Analysts expect NIU’s revenues to increase 57.9% year-over-year to $214.40 million in the current quarter ending September 2021. A $0.28 consensus EPS estimate for the current  quarter indicates a 218.6% rise from the same period last year. Shares of NIU have gained 9.4% intraday to close yesterday’s trading session at $24.33.

The $30.50 median price target indicates a potential 25.4% upside from its last closing price. The 12-month price targets range from a low of $15.00 to a high of $46.00.

Click here to checkout our Electric Vehicle Industry Report for 2021


NIO shares fell $0.24 (-0.62%) in after-hours trading Wednesday. Year-to-date, NIO has declined -20.27%, versus a 18.24% rise in the benchmark S&P 500 index during the same period.


About the Author: Subhasree Kar


Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
NIOGet RatingGet RatingGet Rating
LIGet RatingGet RatingGet Rating
NIUGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Bull vs. Bear Contingency Plans

The S&P 500 (SPY) has endured its 2nd trip down towards bear market territory before a bounce ensued. This last downturn is thanks to the ugly earnings from both WalMart and Target. This is indeed a precarious time and we have to contemplate the odds of bull vs. bear market and the related contingency plans we would enact in our portfolios. 40 year investment veteran, Steve Reitmeister, shares that and more in the commentary below…

:  |  News, Ratings, and Charts

3 Defensive Stocks to Consider Buying During the Market Downturn

The Fed’s aggressive interest rate increases to fight high inflation has raised concerns about a potential recession. During times of market turmoil, companies in defensive sectors will likely perform better than the broader market owing to inelastic demand for their products. Thus, we think it could be profitable now to bet on shares of defensive companies CVS Health (CVS), PepsiCo (PEP), and Albertsons (ACI). Read on.

:  |  News, Ratings, and Charts

Off Target?

There was reason for optimism earlier in the week as the S&P 500 (SPY) advanced nicely after skirting bear market territory. But then on Tuesday WalMart had shockingly poor earnings which was easily ignored. Unfortunately the next day Target reported even worse results and the investment world took notice with a 4% sell off. That rout extended through Friday as we briefly blew past the bear market dividing line at 3,855 to a low of 3,810. Then a late rally ensued ending the session back above bear territory at 3,901. Does WalMart and Target earnings truly change our outlook on the economy and what it means for the stock market? That is the key topic we need to explore this week in our POWR Value commentary. Read on below for more…

:  |  News, Ratings, and Charts

3 High-Quality Dividend Aristocrats to Buy in May

The stock market is experiencing heightened volatility and given the Fed’s aggressive monetary stance to tame inflation, stocks might tumble further in price before hitting a bottom. Hence, we think dividend aristocrats W.W. Grainger (GWW), Target Corp. (TGT), and Cintas Corp. (CTAS) could be quality additions to one’s portfolio now. Read on.

:  |  News, Ratings, and Charts

Off Target?

There was reason for optimism earlier in the week as the S&P 500 (SPY) advanced nicely after skirting bear market territory. But then on Tuesday WalMart had shockingly poor earnings which was easily ignored. Unfortunately the next day Target reported even worse results and the investment world took notice with a 4% sell off. That rout extended through Friday as we briefly blew past the bear market dividing line at 3,855 to a low of 3,810. Then a late rally ensued ending the session back above bear territory at 3,901. Does WalMart and Target earnings truly change our outlook on the economy and what it means for the stock market? That is the key topic we need to explore this week in our POWR Value commentary. Read on below for more…

Read More Stories

More NIO Inc. ADR (NIO) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All NIO News