NIO (NYSE:NIO) (HK:9866) shares are down by nearly 4% today after the Chinese EV major slashed its delivery outlook for the first quarter. Separately, the company is teaming up with Geely Automobile (OTC:GELYF) (HK:0175) for EV charging services.
Slashed Expectations
The company now expects to deliver around 30,000 vehicles in Q1 2024, down from its previous forecast of 31,000 to 33,000 units. This adjustment comes amidst lackluster demand and fierce competition in China’s EV market. According to Yiche, NIO sold 3,000 vehicles in China during the week ended March 24, compared to around 2,200 vehicles in the prior week.
Focus on EV Charging Solutions
In addition to revising their delivery expectations, NIO is also collaborating with Geely Automobile on EV charging services. They have partnered to enable Geely vehicles to utilize NIO’s extensive charging infrastructure while reciprocally connecting Geely’s charging piles to NIO’s network. The companies are also working together on battery swap solutions.
Furthermore, this month, NIO joined forces with battery maker CATL to produce long-lasting EV batteries that can last for up to 15 years.
What Is the Price Target for NIO?
NIO’s share price has plunged by nearly 47% this year alone. Overall, the Street has a Moderate Buy consensus rating on the stock. Additionally, an average NIO price target of $6.99 points to a nearly 46.2% potential upside in the company’s share price.
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