Nio Stock Price Eyes Further Upside After Confirming Reversal

Summary:
• Nio stock price is primed for further upside, supported by strong fundamentals and a reversal to the upside after testing a key support.

Nio stock price stayed on the upside on Wednesday, gaining 1.3% in the premarket session to trade at $4.60. The Chinese EV maker signals recovery following a reversal at the long-term support mark of $4.40. Despite its sales figures growing substantially this year, Nio still finds its stock price trading about 45% below its level a year ago.

The company recorded 20,000+ in vehicle sales for the past seven months, the first such streak in its history. That signals a growing market, and the numbers could grow further as sales of its newly-launched cheaper models, the Onvo L60 and upcoming Firefly pick up.

Nio’s CEO previously stated that it could break even if it maintains a sales record of an average of 30,000 vehicles per month. The company’s sales in the first three quarters of the year stood at 146,281, outperforming the 160,038 sold in the full year, 2023. That affirms the success of its growth strategy.

However, the introduction of cheaper models could also eat into its margins. Nonetheless, I expect Nio’s performance to improve significantly in 2025, driven by its expansion in Europe and MENA region, as well as the economies of scale derived from Onvo and Firefly sales.

Also, Nio (NYSE: NIO) has a solid cash reserve following more than $2 billion in capital injections by its investors in the third quarter. That could cushion it against external shocks as the EV market competition heats up.

Nio stock price prediction

Nio stock price pivots at $4.52, and the upside will prevail if action stays above that level. The upward momentum will likely meet initial resistance at $4.64. However, the price could clear that barrier if the buyers extend their control. That could see further gains to test the second resistance at $4.67.

Alternatively, moving below $4.52 will signal a shift in the momentum to the downside. In that case, Nio could find the first support at $4.50. Breaking below that level will invalidate the upside thesis. Also, the momentum could send the stock price lower to test $4.47.