NIO Stock – After several ups and downs, NIO Limited could be China’s ticket to becoming a true competitor in the electric powered car market.
This company has discovered a way to build on the same trends as the main American counterpart of its and one ignored technology.
Check out the fundamentals, sentiment and technicals to figure out in case you need to Bank or perhaps Tank NIO.
From the latest edition of mine of Bank It or Tank It, I am excited to be speaking about NIO Limited (NIO), basically the Chinese model of Tesla (TSLA)
NIO – The Fundamentals Let’s get started by breaking down the fundamentals. We are going to look at a chart of the key stats. Beginning with a look at total revenues and net income
The total revenues are actually 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).
Just one point you’ll notice is net income. It’s not expected to be in positive territory until 2022. And also you see the dip that it took in 2018.
This’s a business enterprise that, even earlier in 2020, has been on the verge of bankruptcy. China’s government had to bail the organization out.
NIO has been supported by the authorities. You are able to say Tesla has in some degree, also, due to several of the rebates as well as credits for the organization that it was able to exploit. But NIO and China are an entirely different breed than an organization in America.
China’s electric vehicle market is actually in NIO. So, that is what has really saved the business and bought the stock of its this season and early last year. And China will continue to lift up the stock as it continues to develop its policy around a company as NIO, as opposed to Tesla that is trying to break into that country with a growth model.
And there’s not a chance that NIO isn’t about to be competitive in this. China’s today going to have a brand and a dog of the struggle in this electrical car market, as well as NIO is its ticket today.
You can see in the revenues the big jump up to 2021 and 2022. This’s all according to expectations of more need for electric vehicles and more adoption in China, according to fintechzoom.com.
Speaking of Tesla, let’s pull up a few fast comparisons. Check out NIO and the way it stacks up against the competition…
nio stock competition
Source: S&P Capital IQ
A lot of the companies are foreign, numerous based in China and elsewhere on the planet. I included Tesla.
It didn’t come up as being a comparable company, very likely because of its market cap. You can see Tesla at about $800 billion, which is huge. It has one of the top five largest publicly traded firms that exist and just about the most useful stocks these days.
We refer a lot to Tesla. although you can see NIO, at just $91 billion, is nowhere close to the same level of valuation as Tesla.
Let’s amount out that standpoint when we look at Tesla and NIO. The run-ups which they’ve seen, the demand as well as the euphoria surrounding these businesses are driven by two different solutions. With NIO being heavily supported by the China Party, and Tesla making it on its own and developing a cult like following this simply loves the business, loves every aspect it does as well as loves the CEO, Elon Musk.
He’s similar to a modern day Iron Man, along with people are crazy about this guy. NIO doesn’t have that male out front in that fashion. At least not to the American consumer. however, it has discovered a way to continue to build on the same types of trends that Tesla is actually driving.
One interesting item it’s doing otherwise is battery swap technology. We’ve seen Tesla present it before, though the company said there was no genuine demand in it from American consumers or even in other areas. Tesla even constructed a station in China, but NIO’s going all-in on that.
And this’s what’s intriguing since China’s federal government is planning to help necessitate this policy. Indeed, Tesla has much more charging stations throughout China compared to NIO.
But as NIO chooses to broaden and discovers the product it really wants to take, then it’s going to open up for the Chinese government to allow for the business and the development of its. The way, the small business could be the No. one selling brand, likely in China, and then continue to expand with the planet.
With the battery swap technology, you can change out the battery in 5 minutes. What is interesting is NIO is basically selling its cars without batteries.
The company has a line of cars. And all of them, for one, take the identical type of battery pack. And so, it’s able to take the cost and basically knock $10,000 off of it, in case you do the battery swap system. I am sure there are costs introduced into this, which would end up getting a price. But if it’s able to knock $10,000 off a $50,000 car that everyone else has to pay for, that’s a huge difference in case you’re able to make use of battery swap. At the end of the day, you physically don’t have a battery power.
Which makes for a fairly interesting setup for just how NIO is actually likely to take a unique path and still compete with Tesla and continue to develop.
NIO Stock – When some ups and downs, NIO Limited could be China’s ticket to being a true competitor in the electrical vehicle industry.