I have covered the technical analysis on NIO's current situation in previous posts you can check them out on my page. These include the 200MA support, price finding resistance at the 0.5 Fibonacci level, volume patterns in the triangle suggests it will be breaking the top trendline and reverse the bearish trend, it seems to be all lined up. However, one needs to see the fundamentals of a company to know if this is a good hold, and for how long. Here is why I'm buying the dip and why I am confident in NIO's future.
Warren Buffett said, "if you don't feel comfortable owning a stock for 10 years, you shouldn't own it for 10 minutes." The question isn't how is NIO doing now? The question is where will NIO be 5-10 years in the future? That is a question fundamental analysis can answer and not necessarily chart analysis.
Market:
- First, we need to understand the environment of the company. NIO is a Chinese EV company, in fact, China's leading EV company. China stated that they want to completely go electric and hybrid by the year 2035, 14 years from now. And in a country with a population of 1.4 billion going electric, that sets a huge market for NIO. But realistically speaking, what percent of China can even afford NIO since it is about the same price as a Tesla? More than you think. China has one of the world's fastest-growing Middle class with 54% upper-middle-class and 9% considered wealthy. That is over 800 million people and growing, that would statistically be able to afford an NIO car.
- NIO then integrated the battery replacement technology which investors thought was a bad idea because the cars would cost up to $10,000 dollars less, but didn't realize that this will make even more of the population able to afford the vehicles.
- Politics play a role as well. China and America are not on the best terms, to say the least, and since NIO is backed up by the Chinese government, China will slowly cut out Tesla and replace it with NIO.
- NIO is expanding. There have been many job offerings from NIO all around the world, even in the US. With China as a large enough market for NIO to boom, the addition of expansion will create massive growth for the company.
Recent News:
- NIO knows that China is the biggest market for Telsa model 3 and they announced they are working on another sedan to compete with it.
- They made a huge partnering with one of Chinas largest gas station branches, Sinopec, to install their 2.0 battery replacement stations.
- NIO partners up with Ford on electric car charging.
- A cheaper $25,000 NIO car is in the making (even more people can afford it)
Technology:
- One of the most important parts of an EV is the batter. NIO's car batter is actually better than Tesla's. The battery is stronger, more powerful, and provides a much longer driving range.
- They are working on one of the most impressive autonomous driving AI in the EV world. They partnered with Nvidia and Qualcomm to do so which is huge.
- The handling and driving experience is very good, it is overall a very good car.
Company:
- NIO is expanding much faster than its competitors like TSLA, XPEV, and LI.
- Outside of China, it is actually not really known that NIO is very popular there. In fact, their merch is expensive and sold out in seconds.
- NIO is a company that is constantly thinking mainly about the future.
For the sake of not making this post any longer, I only stated the most important and most recent reasons NIO will play a huge part in the EV industry and become one of the leading EV companies worldwide. I estimate NIO to be over $100 by the end of the year and $250-$300 by 2025, $500 best case scenario I just don't see how this company can fail when even in this tough time they are expanding rapidly.
I hope this made you a little more confident in NIO, let me know what you guys think and put some more reasons I may have missed in the comments or if you disagree with something.
Warren Buffett said, "if you don't feel comfortable owning a stock for 10 years, you shouldn't own it for 10 minutes." The question isn't how is NIO doing now? The question is where will NIO be 5-10 years in the future? That is a question fundamental analysis can answer and not necessarily chart analysis.
Market:
- First, we need to understand the environment of the company. NIO is a Chinese EV company, in fact, China's leading EV company. China stated that they want to completely go electric and hybrid by the year 2035, 14 years from now. And in a country with a population of 1.4 billion going electric, that sets a huge market for NIO. But realistically speaking, what percent of China can even afford NIO since it is about the same price as a Tesla? More than you think. China has one of the world's fastest-growing Middle class with 54% upper-middle-class and 9% considered wealthy. That is over 800 million people and growing, that would statistically be able to afford an NIO car.
- NIO then integrated the battery replacement technology which investors thought was a bad idea because the cars would cost up to $10,000 dollars less, but didn't realize that this will make even more of the population able to afford the vehicles.
- Politics play a role as well. China and America are not on the best terms, to say the least, and since NIO is backed up by the Chinese government, China will slowly cut out Tesla and replace it with NIO.
- NIO is expanding. There have been many job offerings from NIO all around the world, even in the US. With China as a large enough market for NIO to boom, the addition of expansion will create massive growth for the company.
Recent News:
- NIO knows that China is the biggest market for Telsa model 3 and they announced they are working on another sedan to compete with it.
- They made a huge partnering with one of Chinas largest gas station branches, Sinopec, to install their 2.0 battery replacement stations.
- NIO partners up with Ford on electric car charging.
- A cheaper $25,000 NIO car is in the making (even more people can afford it)
Technology:
- One of the most important parts of an EV is the batter. NIO's car batter is actually better than Tesla's. The battery is stronger, more powerful, and provides a much longer driving range.
- They are working on one of the most impressive autonomous driving AI in the EV world. They partnered with Nvidia and Qualcomm to do so which is huge.
- The handling and driving experience is very good, it is overall a very good car.
Company:
- NIO is expanding much faster than its competitors like TSLA, XPEV, and LI.
- Outside of China, it is actually not really known that NIO is very popular there. In fact, their merch is expensive and sold out in seconds.
- NIO is a company that is constantly thinking mainly about the future.
For the sake of not making this post any longer, I only stated the most important and most recent reasons NIO will play a huge part in the EV industry and become one of the leading EV companies worldwide. I estimate NIO to be over $100 by the end of the year and $250-$300 by 2025, $500 best case scenario I just don't see how this company can fail when even in this tough time they are expanding rapidly.
I hope this made you a little more confident in NIO, let me know what you guys think and put some more reasons I may have missed in the comments or if you disagree with something.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.