Nio stock price forecast: targets 20% surge as revenue, profits soar

Nio stock price surged to its highest point since December last year, continuing an uptrend that started earlier this year when it formed a double-bottom pattern.

It surged to $6.70 after the company published its strong financial results and its first quarterly profit. 

Nio published strong financial results 

Nio's share price surged this week after the Chinese EV giant reported strong financial results, a sign that the Tesla rival was turning the page after years of substantial losses.

The company said that its vehicle deliveries, revenue, and margins improved.

Its vehicle deliveries jumped to 124,807 in the fourth quarter despite increased competition from companies such as Xiaomi and Li Auto. Its deliveries were much higher than 72,689 in the same period in 2024.

Nio's revenue rose to $4.9 billion in the fourth quarter, up by 76% YoY. Its gross profit rose to $868 million as its margin moved from 11.7% to 17.5%. 

The most important part of the report was that the company's business turned a profit.

It made a net profit of$40.4 million, a big turnaround from a $108 million loss in the same period a year earlier.

Nio's annual revenue jumped from RMB 65.7 billion in 2024 to RMB 87.48 billion, which is equivalent to $12.5 billion. Its annual net loss narrowed from RMB 22.4 billion to RMB 14 billion ($2.1 billion).

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The management hopes that its business will continue doing well this year, with its net profit soaring. 

Similarly, analysts believe that the company’s business will continue doing well, with its annual revenue rising to RMB 126 billion. It will then make RMB 144 billion next year.

This growth is being driven by its premium brand, followed by its brands like ONVO and Firefly. ONVO L90 has become the best-selling SUV in the premium segment. William Li, the CEO, said:

“W will continue to invest decisively in our twelve full-stack core technologies, launch new models, enhance the commercial and operational capabilities of our battery swapping and charging network, and continue upgrading our sales and service network.”

The main challenge for the company is that its business is facing substantial competition in China, where companies like Tesla, Xpeng, and Xiaomi are competing to gain market share.

Also, there are concerns about demand as China rolls back some of the EV subsidies that have fueled the growth in the past few months.

Analysts have a largely bullish outlook for the stock, with the average estimate being $6.35, up from $5.70.

READ MORE: Nio stock price forecast ahead of earnings: buy, sell, or hold?

Nio stock price technical analysis 

The daily chart shows that the Nio share price has rebounded this month.

This rebound happened after the stock formed a double-bottom pattern at $4.38 and the neckline at $5.38. 

The profit target in a double-bottom pattern is estimated by subtracting the double-bottom from the neckline. In this case, the height is $1. One then adds this height to the neckline, bringing the target at $6.78.

The stock has moved above the 50% Fibonacci Retracement level at $5.53. It has jumped above the 50-day and 100-day Exponential Moving Averages (EMA).

Therefore, the most likely scenario is where the stock continues rising as bulls target the key target at $6.84, the 23.6% Fibonacci Retracement level. This target is about 20% above the current level.