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NIO's Future Valuation Could Reach a Fair Value of 18

M_
M_KabeshNot Invested
Community Contributor

Published

January 31 2025

Updated

February 02 2025

As of February 1, 2025, NIO's stock is trading at approximately $4.32 per share. In January 2025, NIO delivered 13,863 electric vehicles, a 55.5% decrease from December but a 37.8% increase year-over-year.

The company continues to face challenges such as intensified competition from domestic rivals like XPeng and Li Auto, as well as global players like Tesla. Additionally, NIO is navigating production constraints and margin pressures. Despite these hurdles, NIO's strategic initiatives, including its innovative Battery-as-a-Service (BaaS) model and expansion into European markets, aim to bolster its market position. Analysts have set a 12-month price target ranging from $12 to $18, reflecting optimism about NIO's growth prospects. If NIO can effectively address its current challenges and capitalize on its strategic initiatives, the stock could appreciate to $10–$15 by the end of 2025. Conversely, if the company struggles to overcome these obstacles, the stock may remain around its current levels or potentially decline further.

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Disclaimer

The user M_Kabesh holds no position in NYSE:NIO. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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US$6.24
FV
35.3% undervalued intrinsic discount
23.79%
Revenue growth p.a.
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Fair Value
US$18.3
77.9% undervalued intrinsic discount
M_Kabesh's Fair Value
Future estimation in
PastFuture-25b466b20162018202020222024202620282029Revenue CN¥466.4bEarnings CN¥27.8b
% p.a.
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Current revenue growth rate
23.69%
Auto revenue growth rate
0.46%