According to Morgan Stanley, although China’s shutdowns have impacted Nio severely, the electric vehicle manufacturer is prepared for a rebound that could happen within the next fifteen days. China’s Covid lockdowns have hammered Nio in recent months. They shut down production and suppressed vehicle sales. However, the government started relaxing restrictions in Shanghai over the weekend — two months after the city shut down as it faced one of its biggest Covid-19 outbreaks since the pandemic started . Morgan Stanley stated that this could result in big Nio gains over the short term. Analyst Tim Hsiao wrote that NIO was well-positioned with the gradual opening of the Yangtze River Delta and the Rmb10k subsidy from the Shanghai government for consumers to buy electric vehicles, and hopes to continue sales momentum. He also noted that Shanghai made up more than 15% in 2021’s sales. Although Nio shares have fallen by 47.7% over the last year, the analyst expects that the stock will recover. Stocks could possibly more than double depending on Friday’s closing price, as the bank holds a $34 target price and an overweight rating. — CNBC’s Michael Bloom contributed reporting
