Nio (NYSE:NIO) stock started the week on a weak note and the shares are trading below $25.

This does not mean that the company is doing something wrong but it is due to the market sentiment that is on the edge for several reasons including the Russia-Ukraine crisis.

Many EV stocks have been affected due to the current market sentiments and will continue to do so in the coming weeks. The short term may be difficult for NIO stock but in the long term, I see it as a solid play.

NIO is down 24% year to date but so are several EV players in the industry. If the company can navigate the current lows, there is no looking back. Remember, Nio ended 2021 with 1400% returns, which was no small feat.

The EV industry has massive potential to expand and the demand for EVs is on the rise globally, which will work in favor of Nio.

The stock has gone from $30 last month to $25 today. I see this dip as a solid chance to buy the stock and add it to your portfolio. 

Ready to Enter the Mass Market 

According to CnEVPost, Nio is planning to enter the mass market with a sub-brand and is developing the model in Hefei, in the Anhui Province.

The report also said that the new model will be positioned below the current sedan and SUV models and it targets a production capacity of 60,000 units.

Nio had confirmed its plans about entering the mass market back in August 2021. There is no doubt that the EV market is in a solid growth stage and Nio will become one of the top players in a decade and the stock may not be this cheap then.

If it enters the mass market, there will be a lot to look forward to and the revenue numbers could explode. 

Nio has reported solid delivery numbers and announced plans to expand in the European markets. I think the company will be able to meet the projected revenue numbers when it reports the fourth-quarter results later this year.

The company ended the year with 91,429 deliveries which is much higher than the previous year and this number is only going to grow in the years ahead.

Third New EV Model in 2022

Nio’s president confirmed that it will start shipping a new five-passenger SUV called ES7 before the end of this year. It will be the third new model of 2022 and the car will be revealed in April.

The ES7 will be based on the advanced NT2.0 platform and its launch will follow the new flagship ET7 sedan and ET5, a smaller sedan. The news have worked as a positive catalyst for NIO stock. 

Barclays believes that the rapid adoption of EVs around the world and the booming sales have given a “rare opportunity” to take a sizeable market share of the auto industry and also build a solid position around the world.

Jiong Shao, Barclays analyst states that EVs are one of China’s top priorities and the country has well-thought-out and supportive government policy agendas for the industry. The analyst has an Overweight rating for the stock with a price target of $34. 

The Bottom Line on NIO Stock 

This could be the bottom for Nio but there is a long way to go and investors should not make the mistake of writing it off. NIO stock looks cheap at the current level and it could rebound soon. Load up on the stock and get ready for a ride.

We might see the stock soar after the company reports the quarterly results and shares further details about the new model. 

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.