NIO Stock: The Case for NIO Hitting $20 in 2023

Source: Robert Way /

If you’re invested in China-based electric vehicle (EV) manufacturer Nio (NYSE:NIO), you might wonder: Where will NIO stock go from here? Well, 2022 was rough, but this year could be much easier. Nio’s recently lowered production outlook has already been factored in by the market. Besides, the automaker’s latest vehicle models should impress even the harshest critics.

Operating a business in China last year was undoubtedly challenging. The country had to deal with on-and-off Covid-19 lockdowns, and this certainly didn’t make it easy for Nio to deliver vehicles and generate revenue.

Now, however, it’s a new year, and Nio is boldly introducing some amazing-looking EV models. China’s challenges may linger in 2023, but Nio’s shares could actually double in value if the automaker can achieve its delivery objectives.

What’s Happening With NIO Stock?

NIO stock started 2022 at around $33 and ended the year at $9.75. That’s a painful drawdown, but value hunters should see an opportunity here.

Getting back to $20 would require a 100%-plus recovery from the current share price. However, it really wasn’t very long ago that the Nio share price was above $30. So, a return to $20 isn’t out of the question.

Morgan Stanley analysts are somewhat less optimistic, but they still gave NIO stock an “overweight” rating and a $16.10 price target. They did this even after Nio released a revised fourth-quarter 2022 vehicle delivery outlook.

Specifically, Nio reduced its delivery estimate for the quarter from the previous range between 43,000 and 48,000 to a new range between 38,500 and 39,500 vehicles. With that, Nio cautioned that it wasn’t able to reach its “full capacities” due to Covid-19-related disruptions.

Amazing New Vehicles Could Help Nio Recover

NIO stock traders pushed the share price lower after the company disclosed its revised quarterly delivery forecast. Thus, it appears that the discouraging news may have already been priced into the stock by now.

Furthermore, the aforementioned Morgan Stanley analysts didn’t seem discouraged. In fact, they “expect that in the coming months, the market will refocus on the pace of resurgence in store traffic/order intake.” In other words, Nio has an opportunity to build back its business over the next 12 months.

If anything will pave the path back to $20 for NIO stock, though, it will be the company’s amazing new EV models. I highly recommend that you check out the photos of the recently unveiled EC7 Crossover Coupe SUV. While you’re at it, take a look at Nio’s redesigned ES8.

Both of those vehicle models are sleek and stunning. Plus, they’re power-packed with dual-motor, all-wheel-drive systems capable of achieving 644 horsepower.

These are two stunning EV models, but Nio’s crown jewel in 2023 will likely be the new EC7 model. Among other attention-grabbers, this iteration of the EC7 features a “large panoramic glass roof that uses double-layer sound and heat insulating glass.”

$20 in 2023 Is Realistic for NIO Stock

Are you willing to test-drive NIO stock after a rough ride in 2022? It’s only for audacious investors, as China’s challenges could persist for a while longer.

Nevertheless, $20 is a realistic Nio share-price target. The company’s reduced vehicle delivery objective could set up the automaker’s investors for a relief rally. Most importantly, the new/revamped vehicle models should remind Wall Street that Nio is still a strong industry contender.

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 Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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