Because of ongoing economic problems in China, electric vehicle manufacturer Nio (NYSE:NIO) hasn’t been a darling of the U.S. financial markets lately. However, my NIO stock analysis indicates that it has the potential to rebound sharply in the next couple of years. Nio’s “electric executive flagship sedan,” the ET9, is coming in 2025 and it will be a key growth driver for the company.
Plus, as you may have heard, China’s government is directly intervening in the country’s stock market. That’s positive news for China’s businesses general and for Nio in particular. So, let’s jump right in and delve into some of Nio’s latest and most exciting developments.
This Powerful Vehicle Will Catalyze NIO Stock
Nio is already showing impressive delivery growth with the company’s currently available vehicles. Amazingly, Nio’s full-year 2023 EV deliveries increased 30.7% year over year. Then, in January 2024, Nio’s EV deliveries grew 18.2% year over year to 10,055 units. Not too shabby for just one month’s time.
How will Nio build upon its success? The answer lies within the automaker’s aforementioned upcoming electric sedan, the ET9. One report states that the ET9 will include more than 100 of Nio’s “full-stack technologies.”
Yet, investors and car shoppers don’t have to wait until 2025 to get a power-packed vehicle from Nio. A report from CarNewsChina.com conveyed a new detail about the currently available ET5, courtesy of the Ministry of Industry and Information Technology (MIIT).
Specifically, ET5 buyers will now have a 150 kilowatt-hours semi-solid-state battery available as an option for the vehicle. Furthermore, WeLion will produce these powerful EV batteries.
As reported by CarNewsChina.com, “According to MIIT information the official CLTC range for the Nio ET5 using the new battery is 1055 km.” Thus, ET5 buyers who choose the more powerful battery can anticipate a greater driving range than they would have expected with the standard 75 kWh battery.
Nio’s Big EV-Battery Team-Up
Meanwhile, there’s tremendous news for Nio courtesy of Electrek.co and CarScoops.com. Reportedly, Nio is teaming up with BYD (OTCMKTS:BYDDY) and other Chinese companies to form a battery-manufacturing consortium.
Other consortium members include CATL, CALB, Svolt Energy Technology, EVE Energy and Gotion High-tech. This all-star consortium is named the China All-Solid-State Battery Collaborative Innovation Platform.
This is a huge win for Nio. BYD and CATL account for more than 50% of the global EV-battery market. Clearly, this consortium has the potential to develop the next generation of EV batteries.
The consortium also includes Chinese government entities, such as the MIIT. Thus, as a member of the consortium, Nio will have access to tremendous resources in the field of EV-battery technology.
NIO Stock Analysis: You’ll Wish You Had Bought It at $6
Nio is already growing its pace of EV deliveries. The ET5, with a more powerful battery, should continue to be a strong seller. Plus, the upcoming ET9 could take Nio’s EV-delivery growth to a whole new level.
Besides, it’s great news for Nio that the automaker is part of China’s all-star EV-battery-technology consortium. Therefore, my NIO stock analysis concludes that if it’s anywhere near $6 – or even if it’s $7 or $8 – it makes perfect sense to buy a few shares right now.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
