investorplace.com/2021/10/...nment-changes-reality-nio-stock/
"....Now Goldman Sachs thinks Nio stock could approach its all-time high and reach $56 per share.
The manufacturing problems seem to be in the past, and so too the quality problems. The company has a new sedan called the ET7, modeled on the Tesla Model S but getting up to 600 miles per charge. It also has self-driving features built on lidar. This is a technology common to other electrics but which Tesla, notably, has rejected.
Nio quarterly sales topped $1 billion for the first time last December and have stayed high. Third quarter sales were double those of a year ago. It should do $5.6 billion in business this year. Sales could hit $9.4 billion next year. Nio’s market cap of $59 billion is a little over 6 times those sales. NIO stock could soon sport that most elusive feature of all, profit. Tesla stock sells for over 20x its current sales.
China’s government takes a Korean approach to new industries. It subsidizes new industries heavily. It lets many companies compete. Then it consolidates into a few companies that can take on the world. JAC Motors is one of those companies, thus so is Nio.
NIO stock remains tied to the Chinese economy as well as the government. Local governments and property developers face huge debts. There is a looming energy shortage this winter. There are lifestyle crackdowns that are going to hurt productivity. The government of Xi Jinping is distracting people from that by threatening Taiwan. So long as William Li is favored in Beijing, however, Nio is safe. I think there’s a floor under the stock. But there’s a ceiling, the Chinese economy, and $56 can wait."