NIO

BYD, NIO and Yamaha have been highlighted in this Industry Outlook article.

The California-based startup has struggled with sales, quality issues and turnover.

While the Zacks Foreign Auto industry's prospects are subdued, here's why stocks like BYDDY, NIO and YMHAY are still worth buying.

NIO (NIO) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

The consensus story on Nio (NYSE:NIO | NIO Price Prediction) has been predictable for years: a cash-burning Chinese electric vehicle startup that was one funding round away from trouble.

Nio stock has pulled back sharply in the past two months, moving from a high of $6.98 in May to a low of $4.66. It has stabilized recently, rising to $5.13 in the premarket session today.

Goldman upgraded NIO stock to Buy from Hold. The broker's new price target is $7 a share, up 45% from recent levels.

Sweden's Polestar reported a 4% fall in quarterly sales volumes on Thursday, weeks after the EV maker was handed a U.S. market ban ​starting in the 2027 model year, adding to its ongoing struggles ‌to turn a profit.

Nio stock price dropped below a crucial support level as demand for Chinese electric vehicle shares fell. It dropped to a multi-month low of $4.88 in New York, down by 40% from its highest point this year despite its strong delivery numbers.

NIO delivered 40,597 vehicles in June, achieving 62.9% Y/Y growth and outpacing Chinese EV peers. Strong ES9 and Firefly deliveries, with premium NIO-branded vehicles comprising 63% of H1 deliveries, drive expectations for Q2 vehicle margin gains. I maintain a 'Strong Buy' rating, viewing NIO as massively undervalued at less than half of next year's expected $23.1B revenue.