NIO Stock Analysis

NIO Stock Analysis

NIO Inc. is one of China’s most popular entrants into the electric vehicle (EV) game. Even though it’s not the biggest Chinese EV maker, NIO stock was one of the most popular stocks in 2021.

On April 1st they announced delivery of 25,768 electric vehicles in the first quarter of this year, representing a nearly 28.5% increase year-over-year. It’s their best quarter ever.

How they approach charging and powering electric vehicles is different from the rest of the market.

Let’s dive in and find out more about this unique company.

NIO Stock Overview

They’re based in China and focus on electric vehicle development and design. NIO was founded in 2014 but has been listed as an ADR on the NYSE since September 2018.

It initially opened at $6 per share. Since then NIO has seen an all-time high of $62.84 (February 9th, 2021) and has recently dropped down to around $22 per share (as of April 6th, 2022). 

Chart of NIO since its listing in 2018 to date 

ADR stands for American Depository Receipts. These receipts are issued by US banks and act as certificates of shares (usually one share each) in foreign stocks.

This allows foreign companies to list and trade on US stock exchanges and attract American investors without having to go through the many rules and regulations of listing on American exchanges.

How does NIO make money?

NIO has an interesting business model that goes beyond just attempting to save the environment with electric vehicles.

Their goal is to combine a slew of premium services with their vehicles to keep customer loyalty across many fronts. They’re creating their own ecosystem of products and services so customers don’t have to look anywhere else.

NIO has its own charging solution called NIO Power which is a mobile internet-based power solution. It offers batteries that can be upgraded/changed depending on each customer’s situation. They also offer various other products as shown in the image below.

Picture via

Nio wants to be the Apple of electric vehicles. Everything to do with powering your home and transportation could be run through NIO products and services one day.

NIO’s Company Fundamentals

Total Revenue (2021)Net Loss (2021)Gross Profit
$ 5.6B-$1.65B$1.06B
Price to Sales (Current)Price to Book Ratio (Current)Market capitalization
Equity (2021)Debt (2021)Cash in the Bank (2021)

What do I do with this information about NIO Stock?

If you are bullish on the EV industry, if you think they are the future and they will replace gasoline cars soon, NIO may be worth further investigation.

Just be aware that NIO’s stock price is easily swayed by how people feel about China on any given day as well. So there’s more volatility to NIO’s stock just because they’re Chinese.

If you’re comfortable with the volatility, they could be a cheaper stock to buy if you want exposure to the EV industry. If you believe it has a lot of upside potential, it might be nice to reap tax free profit in your TFSA.

Of course, do your own due diligence before you decide to buy anything.

That’s all for now.

Happy trading,

Your fellow Stock Hackers,

🍒Cherry & Erwin
P.S. If you’re struggling to find cash flow in real estate, then this is for you: “How Real Estate Investors Find Cash Flow in the Stock Market.” This new, FREE report collects stories from 5 real estate investors and entrepreneurs about how they compliment their rental portfolio with stock hacking. Click here to get your free copy!

Related Post