Nio stock price had another difficult year even as the company made strong progress in terms of market share and its future profitability. It started 2024 trading at $8.64, then plunged to $3.65, and then bounced back and found substantial resistance at $7.70.
Nio’s performance mirrored that of most other electric vehicle companies in China. Li Auto initially jumped to $46.32 in January and then ended the year below $25. XPeng also dropped marginally in 2024. Still, there is a likelihood that the Nio share price will bounce back this year as the work it has put in the last few years start paying off.
Nio has made substantial progress
Nio, a leading Chinese Tesla rival, has been one of the top laggards in the EV industry over the years. Its stock plunged from $67 in 2021 to below $5 today, as it faced numerous challenges.
It experienced a major accounting scandal that threatened its business and likely forever turned off many potential investors. It has also missed several deadlines, reported huge losses over the years, and faced substantial competition from other EV companies in China.
Like other Chinese companies, Nio is also facing some challenges overseas, where countries like the United States and the European Union are putting restrictive policies on Chinese electric vehicles.
Still, the company has continued to invest in its operations and boost its vehicle deliveries. Last week, the company said it delivered 31,138 vehicles, a 72.9% increase from last year. These numbers brought its quarterly deliveries to 72,690, a 45% annual increase, and its annual sales to 221,970, a 38.7% increase.
This growth is phenomenal, considering that the company is facing substantial competition in China, where firms like BYD and Li Auto are gaining market share. Huawei, a company known for its tech products, has also started manufacturing vehicles.
Nio’s growth was also notable because of Tesla’s performance. In 2024, Tesla experienced its first annual drop in vehicle sales, producing 1.77 million vehicles and delivering 1.78 million units.
Nio’s performance is mostly because of its traditional brands and the recent launch of its ONVO brand, which directly competes with Tesla’s Model Y. Its
The company also recently launched the ET9 sedan priced in at about $108,000. This product aims to compete with vehicles like Porsche Panamera and Mercedes-Benz S range. It has a 404-mile range and has an intelligent driving system.
The most recent financial results showed that Nio’s business was doing better than expected. However, its revenue of $2.66 billion dropped 2.1 percent from the same period in 2023. Vehicle sales fell by 4.1% as the company slashed prices to compete with its peers like Li Auto and Xpeng.
Nio expects vehicle prices to stabilize as EV demand in China remains high. It also hopes that launching more expensive vehicles will help offset its business.
Therefore, with Nio, we have a well-known Chinese brand whose business is growing despite the competition. It is also on a path towards profitability and is fairly undervalued. All these factors may help the stock rebound this year.
Nio stock price analysis
NIO chart by TradingView
The weekly chart shows that the Nio share price has been down strongly in the past few years. It has moved sideways since May last year.
Most importantly, it has formed a triple-bottom chart at $3.67. In price action analysis, this pattern is one of the market’s most popular bullish reversal signs.
NIO has dropped below the 50-week moving average, which it is attempting to flip. If this happens, the stock will likely jump to the key resistance point at $7.85, its highest swing on September 9, and 90% above today’s price. A break above that level will point to more upside, potentially to $16.18, up by 270% from the current level and its highest swing in July 2023.
Read more: Nio stock price prediction 2025: a 70% surge is possible
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