NIO is a company that designs and produces electric vehicles. The company sells them in China, Germany, Norway, the United Kingdom, and the United States. The Chinese electric vehicle market is expected to grow substantially soon.
The analysts expect NIO’s annual sales to exceed 10,000 units in 2022. In addition, analysts believe that NIO has an early lead in China’s nascent autonomous driving market. The $52 price target is based on 12x EV/sales adjusted for EV subsidies.
NIO’s shares have soared 55%. The company has grown its revenue and net income every quarter since listing, but it still carries a high price-to-earnings ratio of over 300. NIO’s first mass-production vehicle, the ES8 SUV, is priced at about $65,000 (CNY 480,000).
In order to make its vehicles more affordable, NIO has launched a leasing program and an installment plan. NIO also provides maintenance and repair services through its service centers, insurance services via other companies, and financing options. The company was founded in 2014 and is headquartered in Beijing, China.