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Tesla stock surge predicted by Morgan Stanley

nio stock jp morgan

The company issued revenue guidance of $2.61 billion-$2.69 billion. NIO’s cash investment management approach is a good reference point for other fast-growing, homegrown companies in China facing evolving cash needs as they transition through different stages of their business lifecycle. “Bringing our history, global scope and experience, we also share our industry know-how and partnership with NIO’s treasury team to develop its expertise,” says J.P. Achieving prudent yield enhancement while meeting liquidity and security requirements are global best practices, particularly relevant in China in 2021 as corporations must revisit their cash investment approaches before the new AMP rules come into effect. The Chinese electric-vehicle maker’s stock sold off by 13% Tuesday, one day after NIO delivered a tiny sales “beat” — but lost twice as much money as analysts had bargained for. And yes, there’s a lot of corporate babble-speak in that statement, but roughly translated, what Lai is saying here is that he thinks NIO has the ability to not just sell cars to consumers, and collect money from making those sales.

The average month of September is graphed as a histogram below. Twenty of the days in the month have a negative expected return. JP Morgan also attributes its decision to cut the price target to how “iPhone volume expectations are low given multiple headwinds.”

nio stock jp morgan

The decennial pattern was developed by Edgar Laurence Smith at Ameritrust Bank in the 1930s. He found that the last digit in a year had an effect on the stock market. Years ending in zero had the worst returns and years ending in five had the best, etc. Here are the numbers for both conditions applied to the DJIA.

The company is scheduled to release its next quarterly earnings announcement on Thursday, November 9th 2023. NIO’s stock was trading at $9.75 at the beginning of the year. Since then, NIO stock has increased by 8.5% and is now trading at ema indicator $10.58. By investing in high quality institutional money market solutions in their overall portfolios, they can achieve diversification, especially important when China’s new regulations are phasing out principle-guaranteed products.

NIO Stock Price and News: Shares rise as JP Morgan analyst sees upside in earnings

“We believe the stand-alone risk is modest, but will amplify the challenges in China,” it says. In August, JP Morgan raised its Apple target price to $235, on the basis of both a “robust shareholder return” for 2023, and for how its services mean it is not dependent on product cycles. Bitcoin price is known to have a bullish impact on other altcoins when it rises, but the cryptocurrency is seemingly affecting the stock market too this time. Companies affiliated with digital assets are enjoying gains as BTC, even as the rest of the market remains relatively calm. The delivery targets for Q disappointed investors who had been hoping for a continued strong pace of growth.

The chart to the right plots

the historical put/call ratio for this instrument. Note that cost basis is calculated and stored in thousands, so small quarterly changes in shares frequently

result in a cost basis of zero. One share of NIO stock can currently be purchased for approximately $10.58.

Like many start-ups, NIO has faced cash investment challenges, evolving as it has moved through different phases of its business life cycle. It has experienced rapid growth, combined with a torrent of investment capital, which created vast cash management challenges. NIO has a high cash burn rate due to the high cost of research and development.

The relationship exists because the dollar is traditionally inversely correlated to oil prices — meaning that when the greenback’s value rises, oil prices fall, and vice versa. The correlation exists because the international oil trade is typically denominated in the greenback, so demand for the commodity falls when the value of the dollar gains. Amid a broad discourse about the waning influence of the US dollar, analysts at one bank see one commodity market starting to shy away from the currency. The election year and the decennial pattern can also affect the results.

Given NIO’s current stage in the business life cycle, it was looking for prudent, market-competitive return opportunities for some of its domestically generated cash. Yet meeting its newly broadened appetite for returns proved challenging at a time of ultra-low rates. Choosing JPM GL also meant 24/7 cross-market operational efficiency. NIO’s treasurers in China can quickly manage settlement of capital raised regardless of time zones or business hours. The financial institution also helped NIO’s treasury team enhance its governance, ensuring its liquidity management fulfilled both its own business objectives and US share listing requirements.

More In Analyst Stock Picks

Tesla’s shares jumped Monday after Morgan Stanley analysts upgraded the stock, citing the potential of the supercomputer that Tesla is developing. “The US dollar, one of the key drivers of global oil prices, appears to be losing its once powerful influence,” Natasha Kaneva, the head of global commodities strategy at JPMorgan, wrote in the report. Weakening demand for oil and gas as indicated by a low global purchasing manager’s index in August and sluggish growth in China and Europe offsetting strength in India and Japan. Kelly further expects August retail sales and industrial production figures this week to show a loss of momentum in the U.S.

nio stock jp morgan

NIO is also offering “various types of content (e.g. entertainment)” and also services such as battery replacement, both of which may provide incremental revenue above and beyond the revenue from selling the cars in the first place. In comparison, shares of U.S.-based rival Tesla Inc. (TSLA), which recorded $18.15 billion in revenue from China in 2022, or 22.3% of total revenue, have slipped 2.0% over the past three months. The iShares MSCI China exchange-traded fund (MSCI) has gained 5.6% the past three months and the S&P 500 index has slipped 2.2%. The electric-vehicle maker started production of the supercomputer used to train artificial intelligence (AI) models for self-driving cars in July and plans to spend more than $1 billion on Dojo through next year. The team includes Adam Jonas, one of the highest-profile Tesla analysts. The new price target is the most-bullish on Wall Street, according to FactSet data.

Upgrade to MarketBeat All Access to add more stocks to your watchlist. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. The value of investments may go down as well as up and investors may not get back the full amount invested. Pre-orders for the new models have already started with deliveries for the EC7 slated to kick off in May followed by the new ES8 in June. “The Company emphasizes its continued and unwavering commitment to maintaining high standards of corporate governance and internal control, as well as transparent and timely disclosure in compliance with applicable rules and regulations”, the company concluded.

The ultimate guide on how to customize your iPhone running iOS 16

But battery issues and the well-flagged semiconductor problems were mentioned by CEO William Li on the analyst call. Nio Inc.’s automobiles are built around three key platforms that include a sports car, a line of SUV/crossovers, and a sedan. The EP-9 sports car is the firm’s first model and has been in production since 2016.

The average twelve-month price prediction for NIO is $12.68 with a high price target of $19.20 and a low price target of $7.50. According to JPMorgan analyst Nick Lai, NIO’s Q4 was “solid,” and even a “meaningful beat” if you back out the “unrealized foreign exchange losses” that were the primary reason NIO lost twice as much money as analysts had anticipated. In Q4, NIO reported $1.02 billion in quarterly sales, inching past analysts’ predicted $1.01 billion. On the bottom line, however, the 17,353 EVs NIO delivered in the fourth quarter of 2020 cost the company a GAAP net loss of $0.16 per share, and an “adjusted” loss of $0.14 per share — twice the $0.07 pro forma loss Wall Street had predicted.

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  • To combat both problems the company designs its cars so the batteries are easily removable which factors into the long-term plans.
  • The last rating for NIO was filed on September 6, 2023 so you should expect the next rating to be made available sometime around September 6, 2024.
  • © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.

Regarding the overall new energy vehicle (NEV) market, Lai said he remains “constructive” this year, but he believes the growth rate will decelerate sharply, to 23% in 2023 from 80% in 2022. To inform and empower current and future business leaders by providing the insights, knowledge and connections they need to thrive in a rapidly changing industry. “The more we looked at Dojo, the more we realized the potential for underappreciated value in the stock,” the Morgan Stanley analysts said. The Wall Street brokerage upgraded its recommendation on Tesla’s stock to “overweight” from “equal-weight” and made it their “top pick,” replacing Ferrari’s U.S.-listed shares. It’s not the first time the banking giant called the trend of de-dollarization.

iPhone 15 Pro Max vs. iPhone 14 Pro Max — Specs, price, and features, compared

Apple is expected to upgrade the iPhone 15 Pro models to Wi-Fi 6E thanks to the new A17 processor, so here’s what you need to know about the standard and why you should care. “Should we expect a price increase? We think a price increase across all tiers will preserve the recent shift towards a richer mix,” says JP Morgan. Gold fell on Tuesday amid renewed US Dollar demand, with XAU/USD trading as low as $1,907.53 a troy ounce. The bright metal lost the most during European trading hours, as dismal local data spurred concerns about an economic setback in the United Kingdom and the Euro Zone. The author has no position in any stock mentioned in this article and no business relationship with any company mentioned. NIO will continue its bearish trend once the candle for today’s Tuesday goes live.

Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. Ready cash and secure reserves remain mission critical to NIO. To achieve these at the same time as new AMP rules were about to go into effect required proactivity. By using the combination, NIO maximised its cash investment return opportunities. To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Six weeks ago (May 15) NIO delivered its 200,000th vehicle and ended the month with cumulative deliveries of 204,936 vehicles — after delivering 7,024 units in May 2022. After seeing how fast production ramped in Q4, and NIO’s projections for Q1, the analyst feels confident in predicting that deliveries will more than double this year, to 90,500 units or better. NIO’s stock has tumbled 30.8% over the past three months through Thursday, while shares of China-based rivals XPeng Inc. (XPEV) have dropped 18.5% and Li Auto Inc. (LI) have rallied 11.2%.

Top iPad sales

The last rating for NIO was filed on September 6, 2023 so you should expect the next rating to be made available sometime around September 6, 2024. NIO Inc. is a pioneer in China’s premium electric vehicle market. The company designs, jointly manufactures and sells smart and connected premium electric vehicles, driving innovations in next generation technologies in connectivity, autonomous driving and artificial intelligence. In August 2015, he hiked his price target for the shares by 66 percent based on his view that Tesla would launch an app-based on-demand mobility service to compete with the likes of Uber Technologies Inc. and Lyft Inc. Eight years later, Tesla has yet to introduce such a service, and features the company markets as Autopilot and Full Self-Driving require constant driver supervision.

Morgan Global Liquidity (JPM GL) after its 2018 initial public offering. JPM GL’s USD liquidity solution satisfied NIO’s low risk tolerance,need for timely access to dollars and, importantly, its desire for security. After the myriad issues encountered last year, namely the zero-Covid policies’ impact on production alongside supply chain snags, investors will be hoping the uptick is a harbinger of things to come and not merely a one-off event. The firm remains positive on NIO believing that the company’s vehicle margin will “hit a trough of ~15.5% in Q but rebound strongly to ~18-19%” in the second half of 2022. Regarding the overall new energy vehicle (NEV) market, Lai said he remains “constructive” this year, but he believes the growth rate will decelerate sharply, to 23% in 2023 from 80% in 2022. $46 a share — isn’t that just a couple bucks more than the $44 NIO stock costs today?

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