If any person was under the impression electric vehicle stocks would pause for a breather following 2020’s blistering rise, they forgot to hand Nio (NIO) the memo. The Chinese EV maker has seamlessly advanced into 2021, with shares now up by 31 % since the turn of year.

The company has long been a major beneficiary of the present trend for both EV makers and development stocks. Following the latest annual Nio Day event, J.P. Morgan analyst Nick Lai counts four strategic milestones, the reason he feels Nio will continue to swap more like a fast-growth technology/EV stock compared to a carmaker.

These include the pivot at a distance from the existing products’ Mobileye EQ4 resolution to an in-house autonomous driving (AD) solution based on Nvidia architecture. A solid state battery for the next brand new model – an ET7 sedan – offering 150kwh capacity or maybe range of more than 1,000km, and the commercialization of LiDar to give super sensing capability on ET7.

The majority of intriguing of all, however, would be the first of articles monetization? e.g. Advertisement as a service.

Lai feels this opens up a complete brand new world of monetization possibilities for automobile makers and also suggests future automobiles will be as smartphones with wheels.

For Nio’s next model, the ET7 sedan, owners are going to be ready to view a complete AD service for Rmb680 a month.

Assuming 5 7 yrs of use, Lai states, Cumulative payment would be similar or higher than the one-time AD choice payment at Tesla or Xpeng.

Down the road, Lai expects Nio will ramp up content monetization revenue in various products or services.

The analyst’s awareness evaluation suggests some content revenue could increase rapidly from 2022, implying accretion of equity present value of ~US$21-35/shr.

Accordingly, Lai reiterates a heavy (i.e. Buy) rating on NIO shares and bumped the retail price goal up from fifty dolars to a block high of seventy five dolars. Investors may be pocketing gains of eighteen %, really should Lai’s thesis play out with the coming months. (In order to watch Lai’s track record, click here)

Nio has decent support amidst Lai’s colleagues, but its present valuation presents a conundrum. NIO’s Moderate Buy consensus rating is actually based on 8 Buys and four Holds. But, the share gains keep coming in thick and fast, as well as the $52.28 average price target today suggests shares will drop by ~19 % with the next twelve months.