China EV makers under pressure after reports Biden aiming tariffs at the sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 10 2024
0mins
Source: MarketWatch
- Shares of NIO and Li Auto Falling: Shares of NIO and Li Auto dropped in premarket trading due to reports of potential new tariffs on Chinese sectors, including electric vehicle makers.
- Tariff Updates Under Consideration: The U.S. administration is evaluating Section 301 tariffs from 2018, with a possible announcement of fresh tariffs by Tuesday.
- Origin of Tariffs: The tariffs are believed to be connected to the previous tariffs imposed under former President Donald Trump.
- Impact on Chinese Electric Vehicle Makers: The news of potential tariffs has affected Chinese electric vehicle manufacturers like NIO and Li Auto.
- Ongoing Development: Further updates and details regarding the proposed tariffs are expected as the situation unfolds.
Analyst Views on NIO
Wall Street analysts forecast NIO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NIO is 5.90 USD with a low forecast of 4.00 USD and a high forecast of 7.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
2 Buy
4 Hold
1 Sell
Hold
Current: 4.770
Low
4.00
Averages
5.90
High
7.00
Current: 4.770
Low
4.00
Averages
5.90
High
7.00
About NIO
NIO Inc is a holding company mainly engaged in the design, development, manufacturing and sales of smart electric vehicles. The Company offers premium smart electric vehicles under the NIO brand, family-oriented smart electric vehicles through the ONVO brand, and small smart high-end electric cars with the FIREFLY brand. The Company focuses on building in-house capabilities including battery swapping, assisted and intelligent driving, digital technologies, electric powertrain and battery, vehicle engineering and design, among others, to control the design and development of the vehicle software and hardware architecture and the critical components.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
