NIO Stock – When some ups and downs, NIO Limited might be China’s ticket to becoming a true competitor in the electrical vehicle industry.
This business enterprise has realized a method to make on the same trends as its main American counterpart and one ignored technology.
Take a look at the fundamentals, technicals along with sentiment to figure out in case you need to Bank or maybe Tank NIO.
In the newest edition of mine of Bank It or Tank It, I am excited to be discussing NIO Limited (NIO), generally the Chinese model 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 look at total revenues and net income
The entire revenues are the blue bars on the chart (the key on the right hand side), and net income is actually the line graph on the chart (key on the left-hand side).
Just one idea you’ll see is net income. It’s not even expected to be in positive territory until 2022. And also you see the dip which it took in 2018.
This is a business that, even earlier in 2020, has been on the verge of bankruptcy. China’s government had to bail the company out.
NIO has been dependent on the government. You are able to say Tesla has to some extent, too, due to some of the rebates as well as credits for the business that it was able to make the most of. But NIO and China are a totally different breed than an organization in America.
China’s electric vehicle market is within NIO. So, that is what has really saved the business and purchased its stock this season and early last year. And China is going to continue to lift up the stock as it continues to build the policy of its around an organization as NIO, compared to Tesla that is striving to break into that united states with a growth model.
And there’s no chance that NIO isn’t likely to be competitive in that. China’s now going to have a dog and a brand in the battle in this electrical car market, and NIO is its ticket now.
You can see in the revenues the massive jump up to 2021 as well as 2022. This is all according to expectations of more need for electric vehicles and much more adoption in China, according to fintechzoom.com.
Speaking of Tesla, let us pull up some fast comparisons. Take a look at NIO and just how it stacks up against the competition…
nio stock competition
Source: S&P Capital IQ
A lot of these businesses are overseas, many based in China & in other countries in the world. I included Tesla.
It did not come up as an equivalent business, likely due to its market cap. You are able to see Tesla at around $800 billion, which happens to be massive. It has one of the top 5 largest publicly traded businesses that exist and probably the most important stocks these days.
We refer a lot to Tesla. But you can see NIO, at just $91 billion, is nowhere near exactly the same amount of valuation as Tesla.
Let’s amount out that standpoint when we look at Tesla and NIO. The run ups that they have seen, the euphoria and also the need around these organizations are driven by two various ideas. With NIO being greatly supported by the China Party, and Tesla making it by itself and developing a cult like following that merely loves the business, loves every aspect it does and loves the CEO, Elon Musk.
He is similar to a modern-day Iron Man, as well as people are crazy about this guy. NIO does not have that male out front in this fashion. At least not to the American customer. But it has discovered a way to keep on building on the same varieties of trends that Tesla is driving.
One interesting thing it is doing otherwise is battery swap technology. We have seen Tesla present green living before, but the company said there was no real demand in it from American people or even in other areas. Tesla actually constructed a station in China, but NIO’s going all-in on that.
And this is what is intriguing because China’s federal government is going to help determine this particular policy. Sure, Tesla has much more charging stations throughout China than NIO.
But as NIO wishes to expand as well as finds the product it really wants to take, then it is going to open up for the Chinese government to allow for the company and the development of its. That way, the company may be the No. one selling brand, very likely in China, and then continue to grow with the world.
With the battery swap technology, you are able to change out the battery in 5 minutes. What is interesting is that NIO is essentially selling its cars with no batteries.
The company has a line of cars. And almost all of them, for one, take exactly the same kind of battery pack. And so, it’s in a position to take the cost and essentially knock $10,000 off of it, if you will do the battery swap system. I am sure there are actually fees introduced into that, which would end up having a cost. But in case it is able to knock $10,000 off a $50,000 automobile that everybody else has to pay for, that’s a huge impact in case you are in a position to make use of battery swap. At the end of the day, you physically do not have a battery.
Which makes for quite a interesting setup for just how NIO is about to take a unique path but still strive to compete with Tesla and continue to grow.
NIO Stock – When several ups and downs, NIO Limited might be China’s ticket to becoming a true competitor in the electric powered car market.