Nio stock fell modestly Wednesday but is still on track for its best week since January as management reaffirmed a key financial goal.
“We are very confident to achieve our sales target in 2023,” Nio (NIO) CFO Steven Feng told Bloomberg TV Wednesday.
The Chinese EV startup aims to double sales this year. It doubled its product lineup to six electric vehicle models in 2022, and is set to have eight by the latter half of 2023.
Feng sees those new EV models fueling sales. In addition, Feng expects to hit the sales goal by expanding Nio’s charging and battery swap network, as well as its self-driving technology.
Nio CEO William Li had also said, on a March 1 earnings call, that the company is “very confident” about doubling sales.
Analysts polled by FactSet expect Nio sales to vault nearly 68% to $12 billion in 2023.
On Wednesday, CFO Feng also addressed the China EV price war, saying he expects industry consolidation with “too many automakers” in the country. “But we have no plans to buy anyone,” he added, according to a report of the Bloomberg interview on CnEVPost.com.
Nio Stock, China EV Stocks
U.S.-listed shares of Nio sank 1.9% to 9.09 on the stock market today as the major indexes reversed lower following the latest Fed meeting. Nio stock is still up 11.5% so far this week, which would be its best showing since late January. The premium EV makers is still below its 50-day and 200-day lines.
China EV stocks at large are running an assault on resistance at the 50-day line. Startup peers XPeng (XPEV) and Li Auto (LI) fell 2.1% and 1.1%, respectively, on Wednesday.
BYD, which trades over the counter, climbed 1%. Tesla stock slumped 3.25%, but has bounced this week from a rising 50-day line. Tesla is on track for a 9% weekly gain on the back of rising insurance registrations in China.
China EV Price War
On Wednesday, the China Association of Automobile Manufacturers (CAAM) urged, in a post on its WeChat account, “rational” auto promotions to help the market “return to normal” after the EV price war.
A Reuters report Tuesday said that Chinese EV giant BYD (BYDFF) is reducing shifts as demand weakens in the world’s biggest and fastest-growing market for electric vehicles.
BYD has also discounted several electric models, in response to Tesla Model 3 and Model Y price cuts. Several other EV makers, as well as traditional automakers, have slashed prices in 2023.
Tesla (TSLA) triggered the EV wars in China with price cuts late last year and in January.
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The post Nio Stock Heads For Best Week Since January, Lifted By This EV Goal appeared first on Investor’s Business Daily.
