Any investment in Nio’s stock can be interpreted as tacit support of China’s Communist Government. The current trade war exacerbates this problem for all Chinese firms. Retail and institutional investors, especially those in the U.S., should consider such risks.
Full Answer
Should I buy Nio stock, Rivian or Tesla shares?
Apr 06, 2021 · NIO currently trades at $37 and is below its all-time high of $66.99. The shares are up 117% over the past year. The stock’s 52-week range …
Why to invest in NIO?
JD. NIO. Shares of Chinese premium electric vehicle (EV) maker NIO (NASDAQ: NIO) have been on a roller coaster ride ever since the company went public about a …
Should you invest in NIO?
May 28, 2020 · Nio stock simply hadn’t provided enough return for investors by then, and private investors were not as willing to plow money into the company. EV manufacturers have been plagued by this problem ...
Is Nio still a buy?
NIO's stock has responded favorably to the company's fundamental growth in SUV deliveries recently, posting huge gains as investors flood into the space. However, a …
Can I buy a NIO in the US?
Can I buy stock in NIO?
Is it too late to buy NIO?
Why NIO is not a good investment?
What will NIO be worth?
How can I buy NIO stock in India?
Is NIO a good buy for 2021?
Should I be worried about NIO stock?
Can NIO recover?
Is NIO expected to go up?
Is NIO a good long term stock?
Does NIO have a future?
When was Nio founded?
Nio was founded in late 2014 and to-date, it has delivered close to 40,000 of its flagship ES6 and ES8 vehicles. Tesla (NASDAQ: TSLA) managed to deliver only 147 vehicles from its inception through an equivalent period. Of course, Nio benefited from Tesla’s example.
How many vehicles will Nio deliver in 2020?
Nio doubled deliveries in April 2020 year over year from 2019. The company’s delivery of 3,155 vehicles in April 2020 represented an increase of more than 105% over April 2019. This year-to-year monthly growth represents tangible progress.
Does Nio get a cash injection?
Nio receives a vital cash injection, which will buoy it going forward. This also means that those state-owned enterprises have even more reason to consider the company as their national champion. Pundits believe this agreement should set it up for preferential deals and future financing.
Did NIO have a choice?
NIO Had Little Choice. Further, NIO would likely have preferred private investment for funding over the Chinese state. Nio stock simply hadn’t provided enough return for investors by then, and private investors were not as willing to plow money into the company.
What would happen if NIO shares were delisted?
Having shares delisted from the NYSE would be a serious blow for NIO shareholders. Many U.S. investors would be in a position in which they'd have to decide whether to sell before the delisting took effect or hold onto their stock. They'd still have an ownership interest in NIO, but they wouldn't easily be able to sell their shares or buy more stock without a U.S. listing.
Is NIO an electric vehicle?
Electric vehicles have captured the imagination of people around the world. Investors want their piece of the fast-growing EV industry, and China's NIO ( NYSE:NIO) has been a popular pick among those interested in its electric SUVs.
Is NIO in compliance with HFCAA?
Most importantly, NIO itself has given some positive comments about the law . Reports from multiple sources suggest that NIO believes that it is already in compliance with the HFCAA's provision s.
Is Nio a good company?
Nio is an excellent company , but its shares are trading at a very high price-sales ratio. Electric-vehicle stocks are on a bull run of epic proportions. In 2020, Tesla (NASDAQ: TSLA) and Nio (NYSE: NIO) stock, the two biggest players in the space, have soared 650% and 960%, respectively. I have always been extremely bullish on Nio.
Is Nio a good investment?
As other InvestorPlace columnists have said, Nio stock is an excellent investment. It’s executing well and handsomely rewarding long-term shareholders. At this point, it’s a given that for investors who want to play the EV space, Nio and Tesla remain the best options.
Growth Concerns
Some of this volatility can certainly be attributed to a few standard risk factors that NIO is facing. Some bumpiness is to be expected in the first year following an IPO, and with all of the worries surrounding Chinese stocks right now, it would be surprising not to see some turbulence from Nio stock price.
Hope Is on the Horizon
Since that time, the sentiment towards Nio stock has improved considerably, enabling it to rally above $3.50 over the past few weeks. The firm’s Q2 vehicle deliveries, although still more than 20% lower than its Q1 deliveries, beat expectations. Its latest ES6 sedan has gotten a lot of buzz, as it offers the ability to install a new battery pack.
Competition
NIO isn’t the only electric automaker working toward expanding its footprint in China. Tesla is also hoping to expand its reach in China to capitalize on the nation’s massive embrace of electric vehicles. The company is building its own factory in China, and the plant may start producing cars as early as this autumn.
The Bottom Line on Nio Stock
Nio stock is a highly volatile speculative play. The firm’s finances are dicey, and it doesn’t look likely that the car maker will turn a profit anytime soon. While there has been some promising news about NIO lately, you can almost guarantee that bad news is on the horizon.
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Key Points
Nio reassured investors that despite omicron, its important annual showcase is on track to happen later this month.
NYSE: NIO
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What happened
Shares of Chinese electric-vehicle (EV) maker Nio ( NIO -6.11% ) were trading lower on Thursday, on rising COVID-19 concerns a day after it announced its best monthly sales result to date.
So what
As is true elsewhere in the world, the emergence of the new omicron variant has rekindled concerns about potential business disruptions in China. Those concerns were hitting the EV segment on Thursday; Nio's was just one of many EV-related stocks trading lower in the session.
NYSE: NIO
For the moment at least, the company is doing well. Nio said yesterday that it delivered 10,878 vehicles in November, its best monthly total to date and more than double its year-ago result.
Now what
Should the automaker's investors be worried about omicron? Nio thinks not, or at least not yet. The company issued a statement on Wednesday reassuring fans and investors that its annual Nio Day is on track to happen on Dec. 18 as scheduled.
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What is NIO in China?
Founded in 2019, Shanghai-headquartered NIO is a pioneer in China’s EV market. Often touted as the ‘Tesla of China’, NIO went public on New York Stock Exchange in 2018. NIO’s unique selling proposition is to provide EVs at competitive pricing. Importantly, NIO does not really manufacture its own cars. It contracts state-owned JAC Motors,headquartered in eastern China’s Anhui province, to make vehicles. In turn, JAC charges fee for every car. In fact, NIO does not have a dealership network and instead sells its vehicles through apps and a network of swanky NIO Houses, located in some of the most expensive areas of China’s largest cities.
What is an X industry?
The X Industry (aka Expanded Industry) is a subset of the M (Medium Sized) Industry, which is a subset of the larger Sector category, which is used to classify all of the stocks in the Zacks Universe. The Zacks database contains over 10,000 stocks.
What are the different grades for stocks?
Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.
Does NIO make its own cars?
NIO’s unique selling proposition is to provide EVs at competitive pricing. Importantly, NIO does not really manufacture its own cars. It contracts state-owned JAC Motors,headquartered in eastern China’s Anhui province, to make vehicles. In turn, JAC charges fee for every car. In fact, NIO does not have a dealership network and instead sells its vehicles through apps and a network ...
Is NIO a rising player?
The EV industry is expected to witness massive growth in the coming years. NIO is a rising player in the industry and is currently riding the EV wave. Its prospects are closely associated with the increasing adoption of electrification in China’s auto industry. State backing coupled with strategic partnership with Mobileye and BAAS ( Battery-as-a-Service) offering are expected to be key growth drivers. However, NIO will face a tough competition ahead as the race for EV supremacy will only get fiercer in the coming years.
Who is the competitor of Nio?
Competition: Nio counts at least 14 competitors in the electric SUV space, including SAIC , Audi , Mercedes Benz (OTCMKTS: DMLRY) and Li Auto (NASDAQ: LI ). Nio also contends with BYD (OTCMKTS: BYDDF ), the 800-pound gorilla of the Chinese EV world. Founded in 2003, the Warren Buffett-backed company has become the No. 15 largest car brand in China. In April alone, BYD sold 12,262 plug-in EVs.
What is the margin of NIO?
Gross margin: TSLA generated a 27% gross margin in 2014. Nio, on the other hand, recorded a -15% gross margin in 2019.
What is the number 62 car brand in China?
Today, Nio faces a similar landscape. Carsalesbase, an industry tracker, counts no fewer than 91 Chinese car brands with more than 1,000 sales in 2019. As the No. 62 brand in China (that’s not a misprint), Nio is sandwiched by No. 61 Qorus and No. 63 Oushan Cos, brands barely known outside China.
Is Nio a Tesla?
Source: Sundry Photography / Shutterstock.com. Nio isn’t Tesla. Instead, Nio (known as Wèilái in China) faces far stiffer competition than Tesla ever did. With at least 14 other electric vehicle manufacturers in China, it will take far more than wishful thinking for Nio shareholders to win.
Does Nio make its own cars?
Nio doesn’t produce its own cars. Instead, the car company contracts with state-owned Jianghuai Automobile Group (JAC) for production. Terms, however, are particularly onerous. Not only must Nio pay per vehicle produced, but they also must compensate JAC for any operating losses that JAC itself generates.
Can Nio win?
Can Nio win? Very possibly. Car reviewers have given the company’s new ES6 SUV decent reviews. Nio also managed to grow sales by 12,000 units in 2019, representing a 158% increase .
Is Nio a lifestyle brand?
Die-hard fans of Nio stock would twist this negative into a positive, calling the company a “lifestyle brand.” To them, it’s a benefit that the company doesn’t own its production facilities – why bother if you’re a pure-bred brand? Indeed, Nio also sells clothing, merchandise, and even offers the experience of its “Nio House,” which it bills as “a space for NIO’s users and friends.”
