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Nio Inc. NIO, -5.28% got a bullish endorsement Tuesday from Deutsche Bank analyst Edison Yu, but the China-based electric vehicle maker’s stock fell 3.9% in premarket trading amid a selloff in shares of other EV makers and the broader stock market. Yu initiated coverage of Nio with a buy rating and $24 stock price target, which 33.5% above Friday’s closing price of $17.98. He sees Nio as the leader of an emerging class of China-based automakers backed by large, well capitalized technology giants and local governments, which he refers to the “Fab Four”: Nio, XPeng Inc. XPEV, -6.83%, Li Auto Inc. LI, -6.17% and WM Motor. He said he believes all four can “co-exist” with U.S.-based rival Tesla Inc. TSLA, -21.06%, as there is still “plenty of room to capture market share” away from traditional internal-combustion-engine (ICE) automakers. “With the China EV market already the world’s largest and now inflecting upward after the recent downturn, we believe NIO is well positioned to take share in the premium segment, having put major emphasis on post purchase customer service, alleviating charging anxiety, and developing a robust software/AI centric vehicle ecosystem,” Yu wrote in a note to clients. Shares of Xpeng fell 1.8% ahead of the open, Li Auto lost 4.4% and Tesla tumbled 13%, while futures ES00, -2.39% for the S&P 500 SPX, -2.77% dropped 1.0%.