NIO (NYSE: NIO) Overtakes General Motors (NYSE: GM) as the 6th Most Valuable Automaker in the World With a Market Cap of Over $50 Billion

NIO (NYSE:NIO) just crossed another major threshold today, overtaking General Motor's (NYSE:GM) market capitalization to go the 6th most valuable automaker in the world.

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NIO'southward shares are currently upwardly over five percent, corresponding to a market place capitalization of $fifty.78 billion.

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At the same fourth dimension, General Motors shares are down 0.42 percentage right now, translating to a market cap of $50.39 billion. This means the NIO'southward market cap exceeds that of General Motors by 0.77 percent currently.

This comes just a few weeks after NIO overtook Ford'due south (NYSE:F) market capitalization. A number of conducive factors appear to be acting every bit a tailwind for NIO shares. For instance, just today, Citi (NYSE:C) hiked its stock price target for NIO shares from $33.xx to $46.xl. The bank stated in its investment notation:

"We reiterate our positive view on Nio based on: (1) very strong order backlog (1-5-1.8 calendar month level) with high margin visibility; (2) 3Q20E gross processing margin likely to reach 13-16% level, followed past 4Q20E gross processing margin at 22-25% level; (3) increase in market share; (four) battery cost reduction; and (5) policy tailwind related to exports."

On the 1st of November, the visitor announced its ambitious overseas expansion plans. Dubbed the Marco Polo Project, the try will see NIO establish its presence in cardinal geographical segments. William Li Bin, the company's CEO, made the following comments recently:

"We're hoping to be able to start initial trials in countries where EVs are more than popular in the second half of side by side year."

He went on to state:

"2022 will be the start of broader market entry, and 2023 and 2024 more than fully."

Nearly analysts wait Europe to be one of the offset target destinations for NIO. Afterwards all, the EU represents a speedily expanding EV market place that enjoys a adult infrastructure and considerable policy incentives when it comes to the transition to all-electric transportation. As an analogy, the number of EVs – including plug-in hybrids – registered in Europe crossed the 500,000 mark betwixt January and July of 2020. In the same timeframe, 486,000 EVs were registered in People's republic of china.

Moreover, on the 30th of October, LI Bin revealed that the company was working on a 150-kWh battery that would effectively extend the current range of the ES6 from 430km to over 900km. Mr. Bin made these comments while addressing the EP Society – NIO's elevation user club. Should this materialize, NIO's EVs would substantially accomplish parity with the combustion engine and hybrid vehicles. Further details are likely to be revealed at the upcoming NIO 24-hour interval effect, scheduled for the 9th of January 2021.

These developments come as NIO has been swiftly ramping upward its production chapters. Before in October, the company's CEO revealed in an interview with a Chinese Television channel that the EV manufacturer was leveraging its ongoing partnership with JAC Motors to increase its product capacity to 150,000 units in 2021. In a crucial insight, the CEO also indicated that the visitor's product capacity would double to 300,000 units per annum, corresponding to a monthly product capacity of 25,000 units, past the end of 2021.

Source: https://wccftech.com/nio-nyse-nio-overtakes-general-motors-nyse-gm-as-the-6th-most-valuable-automaker-in-the-world-with-a-market-cap-of-over-50-billion/

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