Electric vehicle company NIO Inc. (NYSE: NIO) is rapidly expanding its business and the stock is benefiting from improvements in vehicle deliveries. As an alternative to Tesla Inc. (NASDAQ: TSLA), NIO is more affordable and may have more short-term potential.
Investors looking to buy stock in this company while it remains affordable will need to act quickly to take advantage of the current price.
A Positive End to 2020
Despite what the company rightfully described as “a challenging year for the whole world,” NIO hit impressive milestones in 2020.
- In December, the company delivered 7,007 vehicles, an increase of 121% compared to the year-ago period.
- In the final quarter of the year, the company delivered 17,353 vehicles, an increase of 111% year over year.
- For the entirety of 2020, the company delivered 43,728 vehicles to its customers, an increase of 112% year over year.
Leaps in Battery Technology
Last year, NIO introduced a 100kWh battery as an option for its vehicles, allowing customers to install a more efficient battery with a longer operating range. Not stopping at 100kWh, the company announced a newer 150kWh battery over the weekend. Using high-density solid-state cells, it will be available before the end of 2022. Batteries are the most critical components of electric vehicles.
The company has taken huge steps from its original 70kWh batteries that were introduced in 2018. The company’s rapid shift to higher capacity batteries will keep existing customers happy (all new batteries can be retrofitted to older models), while also keeping new vehicles competitive in the market.
There’s little doubt that NIO is one of the most innovative electric vehicle companies with plenty of momentum in the automotive market. Likewise, its stock has momentum and is a compelling pick for investors. The 52-week range on this stock is impressive. From a low of $2.11 to a high of $59.31, this pick has generated serious investor returns. It is up more than 1,500% over the last year and 20.89% in the first 11 days of 2021.
The average target price of $329.92 suggests that there’s still plenty of available upside for new investors, and the most bullish analysts see the stock breaching $450 per share within the next year. As an alternative to Tesla or even as a complementary pick in an EV portfolio, this is one of the top stocks of 2021.
You may be interested
Job Hiring is Picking Up as Employers and Consumers Gain ConfidenceLamont J - March 29, 2021
The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…
Fed Could Maintain 0% Interest Rate Until 2024Adam R - March 26, 2021
The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…