Chinese EV stocks drop on expectations Biden may hit sector with 100% tariff
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 10 2024
0mins
Source: MarketWatch
- Chinese EV Makers' Shares Falling: Shares of Chinese electric vehicle makers like Nio and Li Auto were dropping on Friday.
- Biden Administration Tariff Reports: Reports suggest that the Biden administration may introduce new tariffs next week targeting Chinese industries, including EV companies.
- Potential Tariff Increase: The proposed tariffs could increase significantly, with rates potentially quadrupling from 25% to 100% for Chinese EVs.
- Additional Duties Expected: In addition to the tariff increase, there may be an additional 2.5% duty imposed on these products.
- Impact on Market: News of potential tariffs has led to a decline in the stock prices of Chinese EV manufacturers.
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.
