Nio Inc (NIO)

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Nio (NIO) Stock Price Prediction in 2030: Bull, Base & Bear Forecasts
By: 24/7 Wall St. | December 4, 2023

Shanghai-based EV maker Nio Inc. (NYSE: NIO) raised $1 billion in its September 2018 IPO, selling 160 million American Depositary Receipts (ADRs) at $6.26 per ADR. The company initially expected to raise $2 to $3 billion at a valuation sharply higher than the $6.4 billion it settled for.

Thirteen months later, the stock had dropped 75%, setting an all-time low of around $1.20. Then, in June 2020, the stock price began a meteoric rise that didn’t end until it reached an all-time high of around $63.00. Increased deliveries led to positive gross margins and positive cash flow. An extension to the government’s incentives to buyers of EVs added more push.

Again, though, Nio couldn’t hold on. The COVID-19 pandemic and the Chinese government’s mandatory lockdowns crippled production and snarled supply chains. A $740 million share issuance in June drew a line under Nio’s problems. Three months later, a $1 billion convertible debt offering slashed 17% off the share price. Shareholders responded by heading for the exit.

The company has posted big losses in both 2021 and 2022 and analysts expect big losses again in 2023 despite rising sales. In the June quarter of this year, Nio lost $35,000 for every car it sold. That’s even worse than U.S. EV maker Rivian Automotive Inc. (NASDAQ: RIVN). ADD LINK TO RIVIAN BULL-BEAR STORY

Heavy spending on R&D and an EV price war in China compound the problem. So does Nio’s limited global presence. The company sells its cars in a mere handful of European markets and does not plan to enter the U.S. market until sometime in 2025.

Because the company uses a China-based contract manufacturer, Nio’s cars will not qualify for U.S. incentives available to automakers with U.S. manufacturing operations...

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