1 Wall Street Analyst Just Put Nio Stock on "Catalyst Watch." Will Shares Double From Here?

Shares of Chinese electric vehicle (EV) maker Nio (NYSE: NIO) have soared by almost 40% since the first week of April. One Wall Street analyst thinks that's just the beginning. Not only that, Citigroup analyst Jeff Chung believes more moves higher are imminent.

In a report Chung released on Sunday, the analyst placed Nio on a 30-day positive "catalyst watch," reports Barron's. Chung even thinks the stock is worth $8.10 per share, which would represent a more than 100% gain from where it traded at the time of his report.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Can Nio stock double?

Nio delivered about 42,000 EVs in the first quarter, a more than 40% year-over-year increase. Yet Chung still sees sales growth meaningfully accelerating from here. The new optimism comes after the company showcased its newest brands, Onvo and Firefly, at the 2025 Shanghai Auto Show last week.

Its flagship Onvo L90 SUV also made its debut at the show. Both sub-brands are aimed at more of a mass-market EV buyer, offering lower prices without sacrificing many of Nio's leading EV technologies. The auto show impacted Chung's opinion on the stock. He wrote, "After [the] Shanghai auto show, we expect NIO to launch new models much earlier than consensus expected."

Image source: Nio.

That could mean 10 new models launching by the end of 2025. The analyst envisions that leading to more than 50% sequential delivery growth in the second quarter. He believes deliveries could soar to at least 63,000 units in what would be a record quarter.

Chung thinks investors should buy Nio stock now, with the stock expected to trend toward his $8.10 price target as those models launch and upcoming delivery reports show improved data. While I agree that Nio sales should grow at increasingly faster rates moving forward, the stock itself may not react immediately.

Investors buying now shouldn't be expecting a short-term move that the "catalyst watch" designation might imply. In the longer term, however, as sales figures show gains, Nio stock might react as Chung expects.

Should you invest $1,000 in Nio right now?

Before you buy stock in Nio, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nio wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $598,818!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $666,416!*

Now, it’s worth noting Stock Advisor’s total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 28, 2025

Citigroup is an advertising partner of Motley Fool Money. Howard Smith has positions in Nio. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.