Nio stock could more than double from here despite Q4 loss

Nio Inc (NYSE: NIO) could more than double from here even though it reported a sequential increase in quarterly loss on Tuesday, says Tim Hsiao – a Morgan Stanley analyst.

The bull case for $NIO

Hsiao remains super bullish on Nio stock primarily because the loss it reported for the fourth quarter today was within his anticipated range.

The analyst was also uplifted by a meaningful increase in the EV maker’s cash reserves following a $2.2 billion strategic investment from CYVN in December.

Nio Inc also improved its vehicle margin by 90 basis points on a quarter-over-quarter basis to 11.9% due to lower battery costs, as per the Q4 earnings report the New York listed firm published on Tuesday.

$NIO is down some 35% versus the start of this year at writing.

Nio stock has upside to $13

Hsiao stuck to his $13 price objective on Nio stock today which suggests a whopping 140% upside from here.

The electric vehicles company now forecasts 31,000 to 33,000 deliveries in its current financial quarter – also in line with Morgan Stanley’s expectations.

It is also worth mentioning here that while revenue declined and net loss widened for $NIO in its fiscal fourth quarter – both metrics were actually in the green on a year-over-year basis.

Also on Tuesday, analysts at Deutsche Bank reiterated their “buy” rating on Nio shares that, they’re convinced, could climb to $9.0 over the next twelve months. Their price objective translates to a 65% upside from here.