Following a major investment announcement, Morgan Stanley reaffirmed its positive stance on NIO Inc and overweighted it with a price target of $6.10.
The NIO shares, The Chinese multinational electric vehicle company that competes with Elon Musk’s Tesla, rises more than 14% on Wall Street after announcing an investment equivalent to $1.9 billion. In Hong Kong, the company’s stock rose nearly 17%, key for investors in the yield
In that framework, Morgan Stanley reaffirmed its positive stance on NIO Inc and overweighted it with a price target of $6.10. The firm’s analyst highlighted NIO China’s recent financial momentum as a positive development for both the company’s cash flow and share price.
Following the completion of the investment, NIO Inc.’s stake in NIO China will be adjusted to 88.3%, a slight decrease from the previous 92.1%. Besides, there is the possibility of additional investment by NIO Inc., with the option to inject an additional 20 billion yuan on the same terms before December 2025. If this option is exercised, it could increase NIO Inc.’s stake in NIO China to approximately 90.5%.
NIO China plays a crucial role within the parent company, having been established in 2020 to manage various core functions. His responsibilities cover vehicle research and development, supply chain management, sales and service supervision, and operation of NIO Power. The establishment and operations of this subsidiary are part of the company’s strategic efforts to solidify its presence in the electric vehicle market.
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How to invest in NIO?
When buying CEDEAR there are various platforms that can help you, such as Uala, BalanzBanza, among others. Below are the steps to follow once on the platform you have selected:
- Make sure you have the app installed on a device and have funds in your account
- Open the application and select “Investments”
- Click on the “CEDEARs and Actions” option
- Use the search box to find the desired company, in this case, NIO
- Follow the on-screen instructions to complete the CEDEAR purchase.
A NIO paper can be purchased for $1,995 at current value.
CEDEAR: five key tips for operating this market
- Broker Choice: opt for reliable brokers.
- Client Account Opening: complete the required documentation and validate the data to begin operations
- Deposit of Funds: fund your account to start trading
- CEDEAR selection: with more than 250 optionschoose between the FAANGs (Meta, Apple, Amazon, Netflix and Google) and various companies, not just technology
- Purchase of Titles: acquire the CEDEAR according to your budget.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
