2024-05-24 16:21:22 ET
Summary
- NIO's operating losses deepen as deliveries increase, making it difficult to adjust pricing and compete with Tesla's price war in China.
- NIO's pricing advantage in high-end models is overshadowed by its lack of brand strength compared to competitors.
- Recent measures from the White House included introduction of 100% border tax on Chinese EVs, which significantly undermined NIO's export potential.
- The valuation does not look good as there is a 34% downside potential.
My thesis
Read the full article on Seeking Alpha
For further details see:
NIO: Fundamentally Weak And Overvalued