Keep an eye on electric vehicle stock, Nio (NIO).
After getting crushed, the stock is slowly pushing higher on news China just announced it would pay car owners about $1,400 if they replace their current cars with electric or hybrid models, as noted by The Wall Street Journal.
Analysts at DBS Holdings say NIO could see another 90% of upside, reiterating a buy rating. The firm added that vehicle margins could rebound to a range of 15% to 18% as the production of newer vehicles come online in upcoming quarters. In addition, Nio expects to strengthen its edge with the near-term rollout of its 2024 models, including the 2024 ES7, ET7 and ET5.