NIO - NIO Stock: Nothing Is Over
2024-04-13 03:18:09 ET
Summary
- NIO stock has fallen 31% in the past three months due to intense competition in the EV space. But I believe nothing is over for NIO - read on.
- NIO delivered 50,045 EVs in 2023, surpassing goals, and expects a rebound in deliveries in 2024, having a robust cash balance of $7 billion, sufficient for future investments and scaling.
- NIO will prioritize gross profit margin for its brand products while focusing on volume for the mass market brand.
- I believe that the company has growth prospects, as its direct costs should fall as the operations scale up and sales should increase once the firm starts delivering new models.
- I think nothing is over for NIO, despite the stock updating new lows. I reiterate my "Buy" rating, despite my first call aging badly so far.
My Thesis
I initiated coverage of NIO Inc ( NIO ) in mid-January 2024, about 3 months ago, with a "Buy" rating - in that time the stock has fallen a whopping 31%, while the S&P 500 Index ( SP500 ) ( SPY ) has risen 9%:
Seeking Alpha, Oakoff's NIO article