Nio Inc (NYSE: NIO) has lost more than 10% this month as investors continue to take profit after an explosive rally in the EV stock that pushed its price from a low of about $3.0 to a high of $9.
In September, the electric vehicle firm reported a 9.0% year-on-year increase in revenue to $2.65 billion, which, nonetheless, came in shy of Street expectations.
However, there are several exciting reasons for long-term investors to load up on NIO stock on the recent pullback. A few of them are listed below:
Battery swap momentum to drive NIO stock price higher
Nio’s battery swap network hit a new milestone during China’s Golden Week holiday – completing a record 145,955 swaps in a single day.
Over the eight-day period, the company delivered nearly 1.1 million swaps, marking a 37% year-on-year increase in daily average volume.
With over 3,500 swap stations now operational – including 1,002 along highways – NIO is building a scalable infrastructure that could evolve into a defensible moat.
Battery swapping offers speed and convenience unmatched by traditional charging – and the EV maker’s dominance in this space is increasingly hard to replicate.
Adding to the momentum, Nio Inc. announced plans to enter the Armenian market today, expanding its geographic footprint and potentially boosting swap volumes and vehicle sales in the quarters ahead.
This dual-pronged growth strategy, network scale, and international expansion position NIO stock as a differentiated name in the global EV market.
NIO shares are grabbing institutional and analysts’ attention
NIO shares are worth buying on the recent dip and holding for the long term because of the rising institutional interest as well.
On Friday, Knoxville-headquartered investment advisory firm, WMG Financial, confirmed it lifted its stake in the Chinese electric vehicle manufacturer by 17.9% in the second quarter of 2025.
WMG now holds about $1.63 million worth of Nio shares in total, according to a regulatory filing, which serves as a notable vote of confidence in what the future holds for the EV company.
Institutional accumulation often indicates long-term conviction – particularly when paired with strategic developments.
Meanwhile, Citi has placed Nio Inc on a 30-day upside catalyst watch, citing potential triggers that could drive the stock higher. Such designations often reflect expectations around product launches, regulatory clarity, or macro tailwinds.
Together, these developments suggest NIO stock is attracting attention not just from retail traders but from seasoned investors who see value in its roadmap.
Nio is now trading at an attractive valuation
Following the pullback in NIO shares, their valuation has reset to levels that may appeal to long-term investors.
The firm’s expanding battery swap infrastructure, growing international presence, and improving delivery metrics offer a compelling narrative amid broader EV sector volatility.
While near-term earnings may fluctuate, the long-term thesis remains intact: Nio is building a differentiated ecosystem that blends hardware, software, and energy services.
For investors willing to look beyond quarterly noise, the current dip could be an opportunity to accumulate Nio Inc shares ahead of the next growth cycle.
Wall Street also currently has a consensus “overweight” rating on Nio stock with a mean target of about $9.0, indicating potential upside of nearly 30% from here.
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