Nio stock could lose another 15% from here – Barclays warns

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on Apr 2, 2024
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  • Barclays analyst sees further downside in Nio stock to $4.0.
  • $NIO reported a big a decline in Q1 deliveries a year ago.
  • Nio stock has been cut in half in just over three months.

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Nio Inc (NYSE: NIO) has been a disappointment for shareholders since the start of this year but a Barclays analyst warns the stock could tumble further in coming months.

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Nio stock has downside to $4.0

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Jiong Shao downgraded the electric vehicles company to “underweight” today and said its shares could decline further to $4.0. His price objective suggests another 15% downside from here.

The bearish call on Nio stock arrives only a day after the EV firm reported a 40% sequential decline in its quarterly deliveries (find out more).

Shao was particularly disappointed because the report signalled not so encouraging demand even though the New York listed firm launched new models in March.

$NIO is now down roughly 50% versus the final week of December 2023.

Nio may fall short of expectations in 2024

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Jiong Shao warned clients in his research note today that Nio Inc may not be able to meet consensus estimates this year.

He’s dovish because the EV firm based out of Shanghai, China has “limited new product launches in the pipeline planned for the rest of 2024”.

Nio shares will likely be weighed as competition in the electric vehicles market continues to fire up in China as well, the Barclays analyst added on Tuesday.  

Also today, the China Passenger Car Association (CPCA) said sales of China-made Tesla vehicles were up just 0.2% in March versus a year ago. Shares of the EV giant are also down some 30% versus the start of 2024.

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