Nio (NIO) is flying out of the gate today.
Up another 19% to $25.84, the company appears to have the pedal to the metal here. And some analysts, including JP Morgan’s Nick Lai believe it can still double. Today, the analyst upgraded the stock to a buy from a hold rating, taking his price target to $40 from $14.
And, according to Barron’s, “Lai thinks China’s EV penetration will be four times higher by 2025, meaning that about 20% of all new cars sold in China would be battery powered. That is good news for all EV players.”
Helping quite a bit, we may not see an EV demand slowdown for quite some time.
By 2030, we could see up to see 125 million EVs on the road.
All thanks in part to global governments that are forcing millions into the EV boom. In the U.S., California Gov. Gavin Newsom just signed an executive order that will ban the sale of gas-powered passenger cars in the state starting in 2035. That means only EVs will be available for purchase in the next 15 years.
In Europe, “Automakers need to sell more electric vehicles after EU lawmakers in December 2018 ordered them to cut CO2 emissions by 40 percent between 2007 and 2021, and then by a further of 38 percent by 2030, or face fines.”
Plus, China just extended its subsidies for EVs, driving even more growth. In fact, according to a McKinsey report, EV market share in China is expected to grow 11 to 14% by 2022.