Electric vehicle makers are facing multiple headwinds, including slowing demand due to macro pressures, intense competition, and additional tariffs on imports by certain countries. Nonetheless, Wall Street is optimistic about certain EV stocks due to their resilient performance in a tough business backdrop and improving financials. We used TipRanks’ Stock Comparison Tool to place Nio (NIO), Li Auto (LI), and Tesla (TSLA) against each other to pick the EV stock with the highest upside potential, according to Wall Street analysts.
Shares of Chinese EV maker Nio are down more than 42% year-to-date even after witnessing a solid rally in September due to China’s stimulus measures and improving numbers. However, uncertainty about the Chinese government’s measures to support the EV sector and intense competition continue to drag down Nio stock.
Despite a tough business backdrop, Nio reported solid deliveries in September. The company delivered 21,181 vehicles, reflecting a 35.4% year-over-year increase. Its Q3 deliveries grew 11.6% to 61,855 vehicles. The September numbers included 832 units of the company’s first mass-market model Onvo L60, which was launched on September 19.
Recently, Nio announced that a group of Chinese investors will invest RMB3.3 billion in its subsidiary Nio China, while the company itself will invest an additional RMB10 billion. Reacting to the news, Daiwa analyst Kelvin Lau noted that Nio China is the core operational entity for the company and the cash injection by existing shareholders is a favorable development that supports the business operations. Lau has a Buy rating on Nio stock.
HSBC analyst Yuqian Ding lowered the price target for Nio stock to $7.20 from $7.90 but maintained a Buy rating. The analyst has a constructive outlook on Nio’s volumes and margin growth, supported by strong NIO brand sales, the potential for volume expansion for ONVO L60, supply chain cost optimization, and better economies of scale.
Overall, Wall Street has a Moderate Buy recommendation on Nio stock based on eight Buys, four Holds, and one Sell recommendation. The average Nio stock price target of $6.31 implies about 21% upside potential.
See more NIO analyst ratings
Shares of Chinese new energy vehicles (NEV) maker Li Auto have rallied about 22% over the past month due to the news on China’s stimulus measures and the company’s solid September deliveries. However, LI stock is still down more than 32% year-to-date.
Recently, Li Auto reported about a 49% rise in September deliveries to 53,709 vehicles. Overall, the company’s Q3 deliveries increased 45.4% to 152,831. The company attributed the robust performance to solid order intake for Li L series and Li MEGA.
