NIO Stock – After some ups as well as downs, NIO Limited could be China’s ticket to transforming into a true competitor in the electric powered car industry.
This business has realized a way to build on the same trends as its major American counterpart and also one ignored technologies.
Check out the fundamentals, sentiment along with technicals to find out if it is best to Bank or Tank NIO.
From the newest edition of mine of Bank It or Tank It, I am excited to be talking about NIO Limited (NIO), generally the Chinese version of Tesla (TSLA)
NIO – The Fundamentals Let’s get started by breaking down the fundamentals. We are going to examine a chart of the key stats. Starting with a glimpse at total revenues and net income
The total revenues are the blue bars on the chart (the key on the right-hand side), and net income is the line graph on the chart (key on the left-hand side).
Only one thing you’ll see is net income. It is not actually expected to be in positive territory until 2022. And you see the dip which it took in 2018.
This is a business enterprise which, even earlier in 2020, has been on the verge of bankruptcy. China’s government had to bail the business out.
NIO has been reliant on the government. You can say Tesla has to some extent, too, due to some of the rebates and credits for the company that it was able to take advantage of. But NIO and China are a totally different breed than an organization in America.
China’s electric vehicle market is actually in NIO. So, that’s what has really saved the business and bought the stock of its this year and early last year. And China will continue to raise the stock as it continues to build its policy around a company as NIO, versus Tesla that is attempting to break into that country with a growth model.
And there’s no way that NIO is not likely to be competitive in that. China’s today going to have a dog and a brand of the fight in this electrical vehicle market, along with NIO is its ticket right now.
You are able to see in the revenues the massive jump up to 2021 as well as 2022. This is all based on expectations of much more demand for electric vehicles and more adoption in China, according to fintechzoom.com.
Conversing of Tesla, let’s pull up a few quick comparisons. Check out NIO and how it stacks up against the competition…
nio stock competition
Source: S&P Capital IQ
A great deal of the businesses are foreign, many based in China and anywhere else on the planet. I put in Tesla.
It did not come up as being a comparable business, very likely because of its market cap. You can see Tesla at about $800 billion, which happens to be huge. It’s one of the top five largest publicly traded firms that exist and one of the most useful stocks these days.
We refer a lot to Tesla. But you can see NIO, at just $91 billion, is nowhere close to exactly the same amount of valuation as Tesla.
Let us level through that viewpoint when we look at Tesla and NIO. The run-ups which they have seen, the demand and also the euphoria surrounding these companies are driven by two different solutions. With NIO being highly supported by the China Party, and Tesla making it alone and possessing a cult like following that simply loves the company, loves all it does as well as loves the CEO, Elon Musk.
He is like a modern day Iron Man, along with people are crazy about this guy. NIO doesn’t have that man out front in this way. At least not to the American consumer. although it has found a means to continue on to build on the same kinds of trends that Tesla is actually driving.
One intriguing item it’s doing otherwise is battery swap technology. We have seen Tesla introduce it before, though the company said there was no genuine demand in it from American consumers or even in other areas. Tesla sometimes made a station in China, but NIO’s going all in on this.
And this is what’s interesting because China’s government is likely to help determine this policy. Indeed, Tesla has more charging stations throughout China compared to NIO.
But as NIO chooses to expand as well as locates the product it wants to take, then it is going to open up for the Chinese authorities to allow for the company and its growth. The way, the business could be the No. 1 selling brand, likely in China, and then continue to grow over the planet.
With the battery swap technology, you can change out the battery in 5 minutes. What is interesting is NIO is simply selling the cars of its without batteries.
The company has a line of automobiles. And almost all of them, for one, take the same type of battery pack. And so, it is able to take the cost and essentially knock $10,000 off of it, in case you are doing the battery swap program. I am sure there are fees introduced into that, which would end up having a price. But if it is fortunate to knock $10,000 off a $50,000 automobile that everyone else has to pay for, that’s a massive difference in case you’re in a position to use battery swap. At the end of the day, you physically do not own a battery power.
That makes for a pretty intriguing setup for just how NIO is actually going to take a unique path but still compete with Tesla and continue to develop.
NIO Stock – After several ups and downs, NIO Limited may be China’s ticket to becoming a true competitor in the electrical vehicle industry.