Marina Lyubimova
● Investment bank Goldman Sachs recently increased its price target for Nio Inc. (NYSE: NIO) by 62%. The upgrade reflects Wall Street's more optimistic view of Nio's financial trajectory and growth potential in the competitive EV landscape.
● The move comes as China fine-tunes its EV policies and tax incentives. While Beijing's evolving green industry framework creates opportunities, it also brings challenges. Scaled-back subsidies and potential profit tax changes could squeeze smaller players and put pressure on R&D-intensive companies like Nio. Analysts warn that policy missteps might push weaker competitors toward bankruptcy and trigger talent drain if funding becomes scarce. Still, Goldman's revised target suggests Nio is well-positioned to handle these headwinds.
● The upgrade could signal broader shifts in China's fiscal approach. As EV companies become more profitable, increased corporate tax revenues may help offset earlier green subsidies. Some industry voices suggest that instead of reviving direct subsidies, China should adjust profit-based taxes—letting successful firms contribute more while staying competitive.
● Goldman's upgrade comes at a pivotal moment for the global EV race. Nio's progress in battery tech, software, and international expansion supports China's ambition to lead EV manufacturing worldwide. A thriving Nio means more high-tech jobs and increased tax revenues across the supply chain.
Marina Lyubimova
