Nio Stock: Is Nio Worth Buying?

One of NIO’s subsidiaries is a holding firm that focuses on electric automobiles. The EP9 supercar and the ES8 7-seater SUV are among its offerings. Power express valet services, as well as additional power solutions, such as public charging, access to power mobile charging trucks, and battery swapping, are available to customers. There are additional services including service packages, battery payment plans, and vehicle financing and licence plate registration that are available. Bin Li and Li Hong Qin established the business on November 28, 2014, and it now has its headquarters in Jiading, People’s Republic of China.

Why Did Nio’s Shares Drop?

When it comes to investing in electric vehicle (EV) firms, investors are on the lookout for new technologies that will set them apart from the competition. There is a new battery swap technology from Chinese electric vehicle producer Nio (NIO -3.52 percent) that is getting attention today. At first glance, one might expect it to lead to an increase in Nio stock prices, but that isn’t the case this morning. As of 10:15 a.m. Eastern Time, Nio’s American depositary shares were down 3.3%.

Nio Stock

Cathie Wood of Ark Invest’s Cathie Wood bought the dip in Nio stock, and the stock soared to a key level.
Nio entered the automobile manufacturing market in 2014 with no prior experience. Because of its luxurious designs, Nio has been dubbed the Tesla of China. As a result, sales have soared.

For Nio, the partnership with a state-owned automaker means it does not produce its own electric vehicles, in contrast to Tesla (TSLA).

The most recent Nio headlines

On March 28, Nio began shipping its ET7 long-range Model S competitor to Chinese customers. Cathie Wood of Ark Investments, a major Tesla shareholder, had bought Nio shares for the first time just three days previously. Nio’s fourth-quarter results were mixed on March 24. The company’s Q1 delivery expectation was also lower than expected.

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Xpeng (XPEV) and Li Auto (LI), two other electric vehicle start-ups, have already gone public in the United States and Hong Kong, respectively, while trading in Nio shares commenced on March 10th. A meeting between Nio’s top brass and BYD’s (BYDDF) executives rekindled rumours of a deal for a Nio sub-brand with more reasonable prices.

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March and the first quarter of the year’s EV sales figures will be released by Nio in early April.

Profitability and Financial Analysis of Nio

Nio is lagging when it comes to important profits and other fundamental measures. If you’re seeking for a fast-growing and profitable firm, this one is for you. In terms of EPS, Nio stock is ranked 26th out of 99. Comparing a company’s profits growth with that of other companies is what the EPS rating does.

On a scale from best to worst, Nio receives a C for his SMR. Combined sales growth, profit margins, and return on equity are all taken into account in the SMR Rating.

As of March 25, Nio’s fourth-quarter loss for 2021 was worse than expected. Nio decreased its losses to 30 cents per ADR for the full year, despite production shutdowns due to a chip shortage, and its sales jumped 126 percent. Vehicle margins, a key statistic, increased from 13 percent in 2020 to 20 percent in 2021, a significant increase.

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In addition to the Q4 loss, Nio issued a lower-than-expected Q1 delivery estimate due to a long-term shortage of semiconductor chips. According to the South China Morning Post, Chinese EV manufacturers are also experiencing new difficulties obtaining battery supplies.

FactSet predicts that Nio’s losses will widen to 49 cents per share in 2022. For the entire year, revenue is expected to increase by 76%. According to the analysts, Nio’s losses would be reduced to just five cents per share in 2023, as revenue climbs by 67%.

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Nio Stock

Recently, the EV sales of Nio have fallen behind those of Li Auto and Xpeng (XPEV). Even with pandemic-related issues, Nio’s EV sales more than doubled in the year 2021. Li Auto’s 2021 sales were virtually tripled, while those at Xpeng were more than three times as high.

Who knows where Nio stock will go in the future?

Forecasts of Stock Prices

With a median 12-month price goal of 34.02 and a high estimate of 86.78, the 29 analysts providing 12-month price projections for NIO Inc have a wide range of estimates. The most recent price of 21.68 has increased by +56.91 percent, according to the median estimate.

Is NIO a good investment?

In spite of the company’s 2021 decline, Nio has still been a top-performing stock in recent times. There are investors who are willing to spend more than 300 percent more than two years ago for Nio shares, notwithstanding the recent fall.

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There has been a lot of interest in electric vehicle (EV) investments, and the stock of Nio is one of them.

Is NIO stock overpriced, or is it a bargain?

Overvaluation of NIO persists

NIO’s stock remains expensive despite a huge reduction in its valuation during the summer of 2021. Profits for NIO are zero, despite its seven-fold revenue growth rate. If P/S and P/B ratios for 2021 are taken into account, other EV equities are also too expensive to buy.


At the China Auto Expo during the covid19 epidemic, Chinese new energy car brand NIO was represented by its stock.
Helloabc / provided the image.
The battery swapping technology developed by Nio may be available for licencing, according to recent reports. In China, the firm uses technology to enable battery swaps at service stations for its electric cars (EVs).

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The restricted range of electric vehicles, which is a major barrier to mass adoption, can be alleviated by using a battery switch. Nio’s battery swapping technology could open the door for other electric vehicle (EV) companies to use it and develop their businesses if it licences it out. As a result, NIO stock would see a significant increase in value as a result of the licence deals. According to Electrek, this suggests that other companies’ success in the EV sector would provide an additional source of cash.

Nio Stock

Nio’s European managing director, Hui Zhang, says the electric vehicle manufacturer intends to licence battery swapping technology, which lends credence to this theory. There have been no further revelations from Nio when asked about the proposal. As of now, Nio has 868 locations in China where customers may swap their batteries. They each store 13 EV batteries that can be swapped out. Because they are more expensive to create than charging stations, they provide the advantage of being more convenient.

It’s feasible that Nio will begin opening battery swapping stations outside of China in the near future. The fact that the electric vehicle manufacturer has been expanding into the United States and Europe suggests that there is an increased demand for these regions.

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