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Is Nio Inc Class A ADR (NIO) the opportunity of a lifetime?
Although NIO's recent performance may seem disappointing, it is important to evaluate the company's performance in relation to the electric vehicle industry as a whole.
For example, the S&P Kensho Electric Vehicles index has declined 7.2 percent over the past year. In addition, major electric vehicle companies by market capitalization have suffered significant declines in value, thus showing that NIO is not the only one affected.
And in fact, NIO's decline is not even the worst, with Rivian (RIVN) suffering an even more drastic drop.
Although the outlook may seem bleak, I have confidence for the future of NIO. One example is the fourth-quarter figures for 2023, in which the company's actual revenues increased by 7.2 percent, exceeding the forecast of $2204-2289 million.
If this trend were to be repeated in the first quarter of 2024, NIO would see a 4.8 percent increase in revenues instead of a contraction.
There is good news on the way for NIO, in addition to the success of the quarter just ended. CEO William Li recently unveiled their innovative new long-life battery pack with a special 14-hour event.
Now, mass production of this pack has officially begun and should become available for purchase as early as next quarter.
To make the purchase of their ET5 sedan more affordable, NIO has decided to offer the battery pack only in rental mode. However, customers also have the option of buying the car without the battery pack, making it a cheaper option and increasing the company's competitiveness. This strategy has been extremely successful in 2020, increasing sales by 20 percent.
After a long wait, the stock finally reached $4, a price I personally find attractive. I am ready to buy and invest right now. The new arrival of the super battery could give the company a further boost and make it stand out over the competition.
Evaluating a company is a complex process that requires financial knowledge and experience. For this reason, it is always advisable to rely on a professional advisor instead of trading on your own. A good option is TRADINGVIEW, an excellent platform that can help you with your investment strategy.
Using the data provided by Trading View, you can get a general analyst rating on a stock. As you can clearly see in the image below, the stock is currently much lower than its actual value. After careful analysis of the potential market outlook, I decided to invest in the stock with a target of $8. To maximize my gains in a possible long-term sideways phase, I chose to buy an investment certificate that offers a monthly coupon of 1.5 percent if the price remains above 3.05 euros.
The ISIN code is CH1314029567 and it is worth less than the nominal price of 1,000 euros which makes it very attractive.
In my opinion, this company cannot fail, for two reasons: it has significant liquidity and government support.
Because of the financial resources and government support, the company has solid liquidity.
We look forward to seeing you in the next article! And remember, for successful trading always rely on Tradingview: an indispensable tool that can help you avoid serious mistakes during your trading operations.
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