The NIO (NYSE: NIO) –3.82 percent stock’s sell-off has continued. However, there are still some Wall Street investors that believe in the Chinese electric car manufacturer.

American depositary shares of Nio (NIO) plummeted roughly 8% on Thursday after the business gave a poor delivery estimate and revealed a significant reduction in margins. On Friday, the average daily revenue (ADR) fell to $18.41.

The stock’s Overweight rating and $30 price target were maintained by J.P. Morgan analyst Nick Lai. As a result of Covid-related lockdowns in China, he and other analysts at J.P. Morgan were not surprised by NIO’s second-quarter delivery projection of 23,000 to 25,000 cars.

According to Lai, “the route of production as well as margin recovery” will be the most important element in the second half of 2022.NIO reported a decrease in first-quarter margins from 19.5 percent to 14.6%. “Decrease of vehicle margin and loss of other sales margin as a consequence of the additional investment in power and service network,” is what the business blamed for the decline.

As new models are released and supply limitations are eased, the analyst predicts that NIO’s output will increase “rapidly” later this year. A 79 percent increase in third-quarter volume is expected, followed by a 34 percent increase in the fourth quarter.

After a drop to $55 from $60 for NIO shares, analysts at Mizuho said that the business is still “well-positioned for [long-term] growth with secular growth and leadership in China with global expansion ongoing,” despite the obstacles it faces in the short term.

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