What's Going On With Nio Stock?

NIO Inc NIO shares are trading lower Tuesday following a negative analyst update.

What Happened: BofA Securities analyst Ming Hsun Lee downgraded Nio from a Buy rating to a Neutral rating on Tuesday.

The news comes just days after Goldman Sachs initiated coverage on Nio with a 12-month price target of $8.40 and warned of potential growth challenges, citing the company’s lack of new model launches compared to competitors.

Of all the analysts covering Nio, 11 have positive ratings and six have neutral ratings. The current average price target is $27.34, according to Benzinga Pro.

Recent Price Action: Nio shares are already down more than 15% to start the year, but remain higher over the last month. At the end of December, the company launched its new ET9 sedan at its Nio Day event and unveiled its fourth-generation power swap stations, which helped push shares higher.

Nio shares also got a boost after the People’s Bank of China determined that it would increase macroeconomic policy adjustments in an effort to support the economy.

The stock pulled back at the start of the new year after Nio announced a repurchase right notification for its 0% convertible senior notes due 2026. It has continued to trend lower since and is down about 10% over the last five trading days. At publication time, Nio shares were down 4.51% at $7.57, according to Benzinga Pro.