Followers | 689 |
Posts | 143592 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
![](https://investorshub.advfn.com/uicon/35728.png?cb=1539773763)
Sunday, September 05, 2021 11:18:15 AM
By: Tip Ranks | September 5, 2021
Established in 2014, Nio (NYSE:NIO) has come a long way to become one of the leading EV manufacturers in China. The company has seen a steady rise in demand for its luxury SUVs in 2021. Additionally, Nio has witnessed a doubling of its car sales in 2020 and is focusing on developing its battery technology and introducing newer EV models.
The company does not manufacture electric cars. Rather, it has partnered with a state-owned car manufacturer. This has provided Nio with an asset-light business model, allowing Nio to focus on technological development and design, much the same way as other high-profile companies such was Apple (NASDAQ:AAPL).
This extraordinary business model has resulted in otherwise stellar earnings. Nio's recent Q2 results highlighted how successful this Chinese EV player has been. The company updated its forward revenue guidance, and announced plans to battle the rising competition from domestic and foreign rivals such as U.S giant Tesla (NASDAQ:TSLA).
Nio's stock fell after China’s Communist Party’s Central Committee declared a 5-year plan for increased regulation. Indeed, all Chinese growth stocks fell on this news. While the CCP had earlier imposed a series of regulatory curbs on its tech start-ups, investors are increasingly trying to decide how the future regulatory environment may look for Chinese stocks in this environment.
Accordingly, Nio is an intriguing stock to assess today. This author is bullish on the stock. Let's dive into whether this is a worthwhile stock for investors consider a long-term growth investment today. (See Nio stock charts on TipRanks)
Nio Earnings in Q2
Starting with the top line, things are looking up for EV player Nio. The company reported a massive year-over-year revenue jump of 145% in the second quarter. Experts believe that the Chinese EV sector may not be as affected by the recent regulations as much as the other sectors. If true, this implies more upside for NIO stock relative to other high-profile Chinese tech companies.
On the bottom line, Nio also outperformed. The company posted a loss of $0.09 per share, relative to a $0.17 loss during the previous quarter last year. While still losing money, Nio appears to be trending in the right direction, and could head into the black shortly.
Nio's deliveries ended up coming in near the higher-end of the company's previously-estimated range of 21,000-22,000 vehicles. The company reported deliveries of 21,896 units of its luxury electric vehicles this past quarter. These delivery numbers were stronger than many expected, given difficult headwinds caused by a global chip shortage and increased competition.
Nio has stated that its July sales in the current year have more than doubled in comparison to last year. Accordingly, the company aims to sell 23,000 to 25,000 EVs during the next quarter, which would be 88%- 105% more as opposed to last year.
These numbers are very strong, and represent the kind of growth investors expect from a company with this sort of valuation.
Nio Aims to Expand in Norway
Chinese EV manufacturers have already started to make inroads into Norway. Why Norway? Well, it is a major EV market in Europe, with much higher adoption rates than other sub-regions in Europe. EV makers like Nio, BYD Auto (BYDDF (OTC:BYDDF)), Li Auto (LI), and others are planning to enter the Norwegian EV market, which is otherwise dominated by Tesla.
Nio has already shipped its first batch of its ES8 luxury electric SUVs to Norway. Nio’s expansion to foreign markets is a bullish sign for investors looking past China. Though China is a massive, fast-growing market, Nio is clearly making a move to become a global leader in the EV race. Long-term investors ought to like this move.
Nio to Launch a Series of New Models
Currently, Nio manufactures a lineup of luxury electric SUVs, including its ES6, EC6, and ES8 models. Founder and CEO William Li has announced that the company would be introducing its first electric sedan ET7 next year. The EV maker plans to launch three new models in the upcoming year, including its ET7 sedan.
What are the Analysts Saying about NIO Stock?
According to TipRanks analyst rating consensus, NIO stock is a Strong Buy. Out of 7 analyst ratings, there are 7 Buy recommendations.
The average analyst Nio price target is $66.01, implying an upside of 63.6%. The analyst price targets range from a low of $57 for each share to a high of $72 per share.
Bottom Line
Nio has constantly been trying to develop new battery technologies to get an edge over its competitors. Moreover, it is also working on creating a new battery swapping service that would allow users to swap exhausted batteries with a fully-charged one.
With newer EV models, overseas market expansion, and key innovations, Nio is poised to grow. This is a top growth stock every long-term investor should at least look at today.
Disclosure: At the time of publication, Chris MacDonald did not have a position in any of the securities mentioned in this article
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.
Read Full Story »»»
![](http://studentaid.gov/universal-navigation/assets/us_flag_small.png)
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent NIO News
- NIO Inc. to Report Unaudited Second Quarter 2024 Financial Results on Thursday, September 5, 2024 • GlobeNewswire Inc. • 08/22/2024 09:30:19 AM
- Walmart Sells JD.com Stake, Microchip Suffers Cyberattack, Union Pacific Warns of Strike in Canada, and Latest News • IH Market News • 08/21/2024 12:12:11 PM
- NIO Inc. Provides July 2024 Delivery Update • GlobeNewswire Inc. • 08/01/2024 09:30:11 AM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 07/09/2024 10:24:34 AM
- NIO Inc. Announces Management Change • GlobeNewswire Inc. • 07/05/2024 09:30:10 AM
- NIO Inc. Provides June and Second Quarter 2024 Delivery Update • GlobeNewswire Inc. • 07/01/2024 09:30:03 AM
- Cheche Group Announces Partnership with NIO Insurance Broker • PR Newswire (US) • 06/20/2024 11:30:00 AM
- GME Volatile as Roaring Kitty Goes Live Today, Meta Unveils AI for WhatsApp Ads, and More • IH Market News • 06/07/2024 12:09:15 PM
- US Index Futures Mixed; Oil Prices Rise • IH Market News • 06/06/2024 11:29:43 AM
- NIO Inc. Reports Unaudited First Quarter 2024 Financial Results • GlobeNewswire Inc. • 06/06/2024 10:10:50 AM
- Apollo Buys 49% of Intel’s Irish Plant for $11bn, BlackRock and Citadel to Create Texas Exchange, and More News • IH Market News • 06/05/2024 11:41:36 AM
- NIO Inc. Provides May 2024 Delivery Update • GlobeNewswire Inc. • 06/01/2024 09:30:59 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/24/2024 10:14:54 AM
- NIO to Hold Annual General Meeting on June 25, 2024 • GlobeNewswire Inc. • 05/24/2024 09:30:44 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/22/2024 10:06:28 AM
- NIO Inc. to Report Unaudited First Quarter 2024 Financial Results on Thursday, June 6, 2024 • GlobeNewswire Inc. • 05/22/2024 09:30:11 AM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 05/21/2024 08:28:12 PM
- Form F-3ASR - Automatic shelf registration statement of securities of well-known seasoned issuers • Edgar (US Regulatory) • 05/21/2024 08:02:10 PM
- Chubb Stock Soars 9% with Berkshire Acquisition, AST SpaceMobile jumps 37% on AT&T deal, and More News • IH Market News • 05/16/2024 11:27:07 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/16/2024 10:07:01 AM
- Arm Sets 2025 Target for AI Chip Development, Amazon and Microsoft Commit Billions to French Investments, and More • IH Market News • 05/13/2024 11:16:03 AM
- Tesla’s April Sales Down 18% in China, Amazon’s Multi-Billion Dollar Cloud Expansion in Singapore, and More News • IH Market News • 05/07/2024 11:44:00 AM
- NIO Inc. Provides April 2024 Delivery Update • GlobeNewswire Inc. • 05/01/2024 09:30:24 AM
- Samsung Surpasses Apple in Q1 Smartphone Market; Salesforce in Talks to Acquire Informatica, and More News • IH Market News • 04/15/2024 11:06:48 AM
- NIO Inc. Files Its 2023 Annual Report on Form 20-F • GlobeNewswire Inc. • 04/09/2024 10:11:21 AM
Maybacks Adds Award Winning Show to Its Lineup Discusses Maybacks Opportunity • AHRO • Aug 22, 2024 11:30 AM
North Bay Resources Announces First Gold Concentrate at Mt. Vernon Gold Mine, Assays 12 oz/ton Gold, 17.5 oz/ton Platinum, and 8 oz./ton Silver, Sierra County, California • NBRI • Aug 22, 2024 10:28 AM
All Things Mobile Analytic, Inc. Reports Major Growth with Over $11 Million in Revenue • ATMH • Aug 22, 2024 7:19 AM
Unitronix Announces Strategic Entry into Cryptocurrency Space • UTRX • Aug 21, 2024 10:00 AM
Mawson Finland Provides Update on Exploration Activities at Rajapalot • MFL • Aug 21, 2024 9:06 AM
Avant Technologies to Implement Robust Cybersecurity Measures for AI-Driven Healthcare Solutions • AVAI • Aug 21, 2024 8:00 AM