It is a market economic principle that when something is scarce, the value of it automatically increases. This is the notion of scarcity. NIO stocks are surely playing on this notion currently. But investors ask, for how long?
NIO’s recent moves in the market involves the offering of fresh shares to the US. This includes about 69 million shares. Recent reports suggest that the total number of shares might be around 60 million but that is still a lot of new papers in the stock market.
This is not the first time we are hearing of an EV company offering up shares to the market. Previously, another EV manufacturing industry Tesla (NASDAQ: TSLA) had done the same recently. NIO stocks traded at $45.23 during this Friday’s close and according to the books, it is trading at an average of $42.98 currently.
NIO Stocks To Bring Fresh Stocks In The Market; Know What It Means
With the new move, it seems that the company is bringing approximately $2.4 billion worth of fresh capital to the market. And with EV-based companies on the rise, having extra capital to boost production, enhance marketing and distribution process, the company still looks like an attractive deal.
This company has been the talk of the stock town for quite some time now. According to the latest reports issued by equities analysts and research firms, NIO stocks currently have one rating of “sell”, five rating of “hold”, and six ratings of “buy”. This puts the average consensus rating on “hold”. Analysts find out that the bullish trend surrounding this stock has been constantly rising. The consensus is likely to “buy” in another quarter or and the price target of the company is also likely to increase, according to analysts. They further add that NIO stocks are looking agreeable for a long time in the future.