Shares of Nio Inc. (NIO) declined 2.6% during premarket trading on Wednesday, extending their selloff following the China-based electric vehicle maker’s second-quarter report. Despite reporting wider-than-expected losses for Q2 and revenue that fell short of expectations, Nio provided an optimistic outlook for the third quarter.
Analyst Rating and Revised Price Target
Mizuho analyst Jason Getz maintained his buy rating on the stock, highlighting the positive projections for the September quarter and the increasing momentum leading into Q4. However, he did reduce his stock price target from $20 to $18.
Recent Stock Performance
On Tuesday, Nio’s stock experienced a significant drop, reaching an intraday low of $9.46, the lowest it had been in nine weeks. However, the stock managed to recover slightly and closed down just 1.2%. Over the past three months, Nio’s stock has surged by 47%, outperforming the iShares MSCI China ETF (MCHI), which has gained 5%, and the S&P 500, which has seen a 7% increase.
In conclusion, while Nio Inc.’s second-quarter results failed to meet expectations, investors remain cautiously optimistic about the upcoming third quarter. With increasing ramps heading into Q4, the company hopes to capitalize on its positive outlook moving forward.