NIO - NIO: It's Getting Interesting
2024-07-03 17:34:09 ET
Summary
- NIO Inc. stock has lost almost half its value so far in 2024 with weak delivery data in Q1 2024, shrinking revenues, and the EU's tariffs on Chinese EV manufacturers.
- However, with the company's robust deliveries in Q2 2024 and favorable base effect, its revenues are due for a roaring comeback. And tariffs will have minimal effect on it too.
- Progress in battery swap technology and alliances with other EV manufacturers also show potential for NIO.
- However, profitability remains a challenge for it, even as peers like BYD Company and Li Auto are profit generating. The market multiples are underwhelming too.
While China’s electric vehicle [EV] manufacturer NIO Inc. ( NIO ) had an expectedly weak past quarter on the stock markets, with an over 10% price fall, things are looking up for the third quarter of 2024 (Q3 2024). That doesn’t mean that the beleaguered stock, which has lost almost half its value since the start of the year (see chart below), is out of the woods. Far from it. But the recent and upcoming developments detailed below do pose the question - can NIO reclaim at least some of its lost value in the second half of this year?...
NIO: It's Getting Interesting