NIO Stock – After several ups and downs, NIO Limited might be China’s ticket to becoming a true competitor in the electric powered vehicle industry.
This particular company has discovered a method to build on the same trends as the major American counterpart of its and one ignored technology.
Take a look at the fundamentals, technicals along with sentiment to find out if you should Bank or Tank NIO.
From my latest edition of Bank It or Tank It, I’m excited to be speaking about NIO Limited (NIO), basically the Chinese version of Tesla (TSLA)
NIO – The Fundamentals Let us get started by breaking down the fundamentals. We’re going to examine a chart of the main stats. Starting with a peek at net income and total revenues
The total revenues are actually the blue bars on the chart (the key on the right-hand side), and net revenue is the line graph on the chart (key on the left hand side).
Only one idea you’ll see is net income. It’s not even likely 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 business out.
NIO has been supported by the authorities. You can say Tesla has to some extent, too, due to several of the rebates and credits for the business that it was able to make the most of. But NIO and China are an entirely 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 year and earlier last year. And China is going to continue to lift the stock as it will continue to develop the policy of its around a company as NIO, compared to Tesla that is attempting to break into that united states with a growth model.
And there is not a chance that NIO isn’t about to be competitive in this. China’s now going to experience a brand and a dog in the struggle in this electric car market, along with NIO is the ticket of its today.
You can see in the revenues the huge jump up to 2021 as well as 2022. This’s all based on expectations of much more demand for electric vehicles and much more adoption in China, according to fintechzoom.com.
Speaking of Tesla, let’s pull up some fast comparisons. Have a look at NIO and just how it stacks up against the competition…
nio stock competition
Source: S&P Capital IQ
A good deal of the organizations are foreign, many based in China & anywhere else in the world. I put in Tesla.
It did not come up as being an equivalent company, likely due to its market cap. You can see Tesla at about $800 billion, which happens to be massive. It has one of the top 5 largest publicly traded companies that exist and probably the most valuable stocks available.
We refer a lot to Tesla. But you can see NIO, at just ninety one dolars billion, is nowhere close to the same degree of valuation as Tesla.
Let us amount out that standpoint if we talk about Tesla and NIO. The run-ups that they’ve seen, the euphoria as well as the need surrounding these organizations are driven by two different ideas. With NIO being heavily supported by the China Party, and Tesla making it by itself and developing a cult-like following this merely loves the company, loves everything it does as well as loves the CEO, Elon Musk.
He is similar to a modern day Iron Man, as well as people are crazy about this guy. NIO doesn’t have that male out front in that way. At least not to the American consumer. But it has discovered a means to keep on building on the same varieties of trends that Tesla is riding.
One intriguing item it’s doing differently is battery swap technologies. We’ve seen Tesla present green living before, but the company said there was no actual demand in it from American people or in other places. Tesla even constructed a station in China, but NIO’s going all in on that.
And this is what’s intriguing since China’s government is going to help dictate this particular policy. Indeed, Tesla has more charging stations throughout China compared to NIO.
But as NIO prefers to expand and finds the product it desires to take, then it is going to open up for the Chinese authorities to allow for the business and the growth of its. That way, the small business could be the No. 1 selling brand, likely in China, and then continue to expand with the planet.
With the battery swap technology, you are able to change out the battery in five minutes. What is intriguing is NIO is essentially marketing the automobiles of its without batteries.
The company has a line of automobiles. And almost all of them, for one, take the same sort of battery pack. So, it’s fortunate to take the fee and basically knock $10,000 off of it, if you will do the battery swap system. I’m sure there are actually fees introduced into that, which would end up having a price. But in case it is in a position to knock $10,000 off a $50,000 automobile that everyone else has to pay for, that is a huge difference in case you are in a position to use battery swap. At the end of the day, you actually don’t have a battery power.
Which makes for a fairly interesting setup for just how NIO is actually going to take a different path and still be competitive with Tesla and continue to grow.
NIO Stock – When several ups and downs, NIO Limited might be China’s ticket to being a true competitor in the electric car market.