Nio Stock Is Trading Higher: What's Going On?

NIO Inc NIO shares continue to trade higher Tuesday after the company said it would lower prices on its vehicles this week. Several analysts also adjusted price targets on the stock on Monday.

What Happened: Nio announced plans to cut prices on all of its vehicle models by $4,200, per Reuters. The company also plans to end free battery swapping for new buyers. 

The lower prices represent a pricing discount of 6% to 9% and went into effect Monday. Buyers who place deposits will no longer receive free battery swap services starting this week.

"The adjustments had been discussed internally for quite a while and we took advice and suggestions from some users," said William Li, CEO of Nio.

The news comes after Nio reported first-quarter results at the end of last week that were down on a year-over-year basis. The company reported quarterly revenue of $1.55 billion and an adjusted EPADS loss of 36 cents per share, down from a loss of 13 cents per share year-over-year. 

Nio said last week that it expects deliveries to be down 0.2% to 8.2% in the second quarter.

Check This Out: Nio Charges Higher Following Price Cuts: A Technical Analysis

Analyst Updates:

• BofA Securities analyst Ming Hsun Lee maintained Nio with a Buy and lowered the price target from $12 to $11.
• JP Morgan analyst Nick Lai maintained Nio with a Neutral and lowered the price target from $10 to $8.50.
• Citigroup analyst Jeff Chung maintained Nio with a Buy and lowered the price target from $13.40 to $11.50.
• Mizuho analyst Vijay Rakesh maintained Nio with a Buy and lowered the price target from $25 to $20.
• Morgan Stanley analyst Tim Hsiao reiterated Nio with an Overweight and maintained a $12 price target.

NIO Price Action: Nio shares closed Monday up 8.67%. The stock was up another 2.86% at $8.64 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Nio.