Nio shares hit a 52-week low, but does that mean it's a good time to buy?
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Nio (NYSE:NIO) shares hit a 52-week low on Friday, as investors have turned away from more speculative investments during the early stages of 2022. But does the recent slide mean itâs a good time to buy?
While itâs true that the Chinese EV maker has been caught in a broader sell-off of EV stocks, NIO has been hit particularly hard. NIO shares have fallen 64% over the past 12 months and are down 34% year-to-date. In comparison, the S&P 500 index has risen 17% over the past 12 months and slid 7% since the beginning of the year.
NIOâs stock has also had a rougher ride than two of its leading Chinese rivals, Li (NASDAQ:LI) and XPeng (NYSE:XPEV). Shares of Li have dropped 26% over the past 12 months and 25% since the beginning of the year, while XPeng shares are down 36% for both the 12-month and year-to-date periods.
In comparison, shares of US-based Tesla (NASDAQ:TSLA) have risen 1% over the past 12 months and are down 20% since the start of 2022.
Wall Street analysts have a buy rating on NIO, on average. Of the 24 analysts tracked by SA over the past 90 days, 13 rated the stock a strong buy, 8 a buy and 3 a hold. None rated it a sell. SA contributors are also bullish on the stock, with an average rating of buy.
On the flip side, SAâs Quant rating is a sell. The company earned a D for valuation, D for profitability, and a D- for momentum. It did manage to get a C+ for growth.
BofA Securities said in a recent note that it sees demand for NIO vehicles remaining strong, despite ongoing supply chain issues for batteries and chip components. The bank has a buy rating on the stock with a price target of $65.
BofA also noted that the company has plans to launch three new models in 2022, including a luxury sedan positioned to compete with BMWâs 5-series and the Audi A6. At least three additional models are planned for 2023 as well.
NIOâs stock could be put under even more pressure this week when it releases its monthly delivery numbers. Earlier this month, Morgan Stanley warned that Chinese EV sales for the sector could come in lower than expected.
Concerns also remain about how NIO will fare amid Chinaâs scaling back of EV subsidies, heightened market volatility and continuing deterioration of relations between the US and China. Rising speculation that several China-based stocks could soon delist from US exchanges has further fanned fears about investing in stocks like NIO.

SA contributor Douglas Adams said he sees NIO shares being delisted as early as January 2024, given the current state of US and Chinese regulatory affairs. Fellow contributor Gary Bourgeault, meanwhile, said he believes that political and macroeconomic concerns about Nio are overblown.