My Youtube channel:
https://www.youtube.com/channel/UCAPWOEQKCpCWmzKkdo7v-iw/about
Do support, like and subscribe to my youtube channel if you like my analysis.
Nio needs no introduction as it was a very popular name since Tesla revolutionises the automobile industry. Tesla in recent days hit almost 1 trillion USD market capitalisation. But it was a game changer in 2020 such that the surge in attention in electric vehicles in 2020 led to Tesla's share price soaring. It was then that people starts paying attention to Nio, Li Auto, Xpeng, Nikola, etc.. Well Nikola was caught in some scandal about how they market their electric vehicle sometime in 2021 but nevertheless, it is not the focus of this article.
Nio has delivered around 91,000 electric vehicles in 2021, around 10% of what Tesla has delivered in 2021. If we are to look at the quarterly figures for vehicles deliveries, it is not surprisingly to see that Nio's deliveries are up quarter on quarter. In fact, 4Q2021 figures look good.
Even gross margin is up for the last reported quarter, i.e. 3Q2021 but what actually went wrong for Nio shares, which have been declining since it hit at a price of around 65 USD in early 2021. One part pertains to general fear over ADRs whereas another part pertains to a point that we have to think through carefully. Is electric vehicles manufacturer overpriced for most part of last year, i.e. 2021, during which the share price surge of the EV sector is inspired by our DEAR ELON MUSK'S TESLA. There is still possibility. I havent digged too deep into Nio financials yet but I do use this short article to build as a base for my future articles on Nio and other EV manufacturers based in China.
Beside the recent ADRs offering by Nio at market (around 37 USD then based on what I recalled) as well as the reduction in subsidies for EV, there is pretty much nothing new that surprised the market. There will be intensifying competition as we see Xiaomi, Baidu, etc announcing their decisions to venture into the EV space.
All in all, despite the fall in Nio price from 65 USD all the way to around 30 USD now, I think there is still no need to rush into a position in Nio given my risk reward profile. I would probably wait for Nio to fall within 15 to 18 USD before reassessing the position in Nio. Given this view, I will not touch Tesla as well.
As always, this should not be construed as any investment or trading advice.
Some of my other youtube videos are as follows:-
$NIO Inc.(NIO)$$Li Auto(LI)$$XPeng Inc.(XPEV)$$Tesla Motors(TSLA)$$BYD COMPANY(01211)$
精彩评论