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Shanghai-based electric vehicle (EV) maker NIO (NIO) is quite popular among U.S. investors, and is among the most heavily traded Chinese stocks, with average trading volumes of over 56 million. Once hailed as the “Tesla of China,” NIO is currently struggling with perennial losses and tepid deliveries. What’s the forecast for NIO stock, and can the Chinese EV company live up to this hype? We'll discuss in this article.
NIO stock hit an all-time high closing price of $62.84 in February 2021, and its market cap was once more than $100 billion. That said, it was almost the industry standard for startup EV companies to command those kinds of inflated valuations between 2020 and 2021. For instance, Rivian’s (RIVN) market cap topped $150 billion shortly after its 2021 IPO, while Lucid Group's (LCID) market cap was within striking distance of $100 billion at its peak.
