Nio Stock
First Published date: 9. November, 2022Last Updated: 30. January, 2023Fact-checked by Adrian Müller
When we talk about electric vehicles or EVs, most of us refer to Tesla or Rivian. These are the US-based giants. However, only some people are familiar with Nio, the Chinese EV car company. Well, except for investors.
Nio has the potential to give companies like Tesla and Rivian a good run for their money. This guide will cover everything you need to know about Nio stock as an investor. This article will delve into the company profile, the EV competitive landscape in China, and more. Let’s get started.
Table of Content
Nio Stock Live Chart and Financials
Before reading this article, have a look at the current Nio stock price showing key current and historical financials of the company. You may also expand the menu options to conduct your customized analysis with additional technical indicators based on the actual market data!Nio Company Profile
When researching a company, the best place to start is with the company profile, whether for investment or any other reason. Nio was founded relatively recently, as it began its journey in November 2014.
One of its main goals is to build a community of smart electric vehicles. The company mainly targets the premium sectors. So, chances are you won’t see any budget models from them, such as the Tesla Model 3. Unless there are some strategic decision changes by the company.
The market is very competitive now, and things might go very well. More on that a bit later.
Nio is a Chinese manufacturer. That could be why only a small minority outside China, except investors, know about the company.
Nio Key People and Leaders
| Name | Position/Role |
|---|---|
| Bin Li | Founder, Chairman, and Chief Executive Officer |
| Lihong Qin | Co-founder, Director, and President |
| Xin Zhou | Executive Vice President and Chairman of Product Committee |
| Ganesh V. Iyer | Chief Executive Officer of NIO U.S. |
| Feng Shen | Executive Vice President and Chairman of Quality Management Committee |
| Wei Feng | Chief Financial Officer |
You can also check the management and the people making the NIO dream a reality in more detail here.
Nio and its leaders are committed to upholding the highest standard of business ethics. It conducts business under business laws and regulations. You can check out Nio’s website for more on its corporate governance.
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Nio Innovations
The company has a fascinating strategy that’s different from Tesla – battery swapping. As you might know, Tesla has a strong network of chargers called Supercharges. Before deploying the Supercharger network, the company tried battery swapping but never rolled them out on a large scale.
Nio has 900 battery-swapping stations around Chinese expressways. All of which are functioning well. It rolled out its stations in phases. In the first phase, it installed 18 battery swap stations along the G4 expressway.
Then, in the second phase, the company installed battery swap stations in 8 more locations along the G2 expressway. The second phase was completed in 2019. Till 2020, the company had performed about 800,000 battery swaps for its loyal customers.
Even more impressive is that Nio built 143 battery swap stations across 64 cities in its home countries. The company finished installing its 700th battery swap station in March 2021. These stations are pretty high-tech too.
Customers park their cars inside the stations and don’t need to get out of them either. Within just 3 minutes, the car’s battery will be swapped – ready to go. Apart from battery swap stations, NIO supercharges as well. 134 supercharging stations, to be exact.
NOMI AI
Nio has expertise in AI technologies like NOMI AI. You can think of NOMI AI as the car’s digital assistant. NOMI Mate 2.0 is an advanced system built by the company, where commuters can interact with it through a human-face interface, like an avatar.
It can do extraordinary things like set the seating and driving positions according to your preference when it senses you’re approaching the car. You can also interact with it through verbal commands.
Aquila
Self-driving isn’t just restricted to Tesla. In November 2019, Nio announced a partnership with Mobileye. This partnership aimed to develop self-driving capabilities for its cars using Mobileye’s Level 4 self-driving system. It’s called Aquila and will start rolling out this year to consumers.
NIO PILOT
Then there’s NIO Pilot! It’s the company’s own SAE level-2 semi-autonomous driving system. One of the coolest features it has is ADAS. This feature launched with the ES8 model and has received several OTA updates since then.
It has all the necessary features, such as lane keeping, lane departure warning, auto emergency braking, adaptive cruise control, and more.
Other NIO Divisions
One of the things that makes Nio so attractive to investors is its other divisions. The company is diversified. It has branches that provide lifestyle products and power. Its lifestyle division is called Nio Life.
Additionally, it has a sustainable fashion label called Blue Sky Lab. Nio Life organized an exciting project by collaborating with the Parsons School of Design. It gave young students the unique challenge of creating products from leftover car manufacturer materials.
Nio Service and Nio Power are its other divisions that work closely to support its automotive branch. Nio Service is the company’s network of service centers in which it operates.
You can request a pick-up-and-delivery for your cars through it. There’s also the option to have a mobile service center carry out regular maintenance for your car.
Nio Power, on the other hand, is a bit different. It’s the company’s network of battery swap stations that we mentioned earlier. Nio Power is more than just a battery swap. It operates the swapping centers along with the power mobiles, superchargers, and power home stations.
Ensuring all the 900 swap centers are running is a big task. So, it requires a team to give customers the best experience possible. Nio Power makes sure that’s what users get.
EV Competitors In China & Current Market Dynamics
No matter your business, China is probably one of your biggest priorities. The sheer size of the country and the population mean that there are a lot of potential customers. It’s a vast market.
For EV companies, the story is the same. China is a huge EV market, which is growing more and more. That’s why Chinese EV companies are such a draw to growth investors. China is world-leading in terms of electric vehicle adoption.
So, companies and investors must pay attention to the Chinese EV market if they’re serious. For more information, check out this statistic from the World Economic Forum. China’s four of the top five EV companies are all homegrown.
Yep, that’s right. Only Tesla is the ‘outsider.’ What makes matters even more interesting is that Tesla has the third-largest market share in the country. This tells you that the Chinese electric vehicle market is very competitive. Here’s a brief look at the competitors.
BYD
BYD is hands down one of Nio’s strongest competitors. It was founded in 2003 and has sold over 590,000 units so far. BYD also has the largest Chinese EV market share at 27.9%. Its highest seller is compact and futuristic electric SUVs.
Chery
A lot of people might have heard of Chery. The company was founded in 1997. So, it’s one of the most mature companies competing in the space. Chery is a state-owned corporation holding about 4.9% of China’s electric vehicle market share.
One of its most popular models is the BHV hatchback. It’s a very affordable little car launched pretty recently in 2021.
GAC
GAC was founded in 1954, making it even older than Chery. The company sold over 535,000 units, and it’s state-owned. GAC accounts for 4.2% of the market share in the Chinese EV market. Its most popular model is a small sedan called the Aion S. GAC started production of the Aion S in 2019. Just over a year later, it became the seventh best-selling electric vehicle in the country.
As you can see, the competition is pretty fierce in the Chinese EV market. So, investors must take an all-hands approach. You’ll need to understand the market and also the companies. Looking into what each company brings to the table regarding innovation and efficiency is essential.
Stock Price & Our Summary Of The Latest Company News
The current stock price of Nio is $11.02. Of course, stock prices can change depending on many variables. So, it’s always best to keep updated with the latest prices. You can check out the latest stock prices from Yahoo Finance.
The company’s stock price has been up and down for a while. In March 2022, it reached a high of $22. In November 2021, it peaked at one of its highest values, $43.52.
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Growth Strategy
Numbers are important, but to truly evaluate a company, you’ll need to understand how it plans to grow. Since the Chinese EV market is so competitive, you’ll need a competitive company to survive.
That’s why looking into the growth strategy of Nio is so crucial. Here, we find good news for investors. Nio’s growth strategy is looking pretty solid right now. It’s even being called the “Tesla of China.”
One of NIO’s core strategies is to compete by creating a robust ecosystem. You can think of Apple and its ecosystem. Apple is famous for having a seamless product and software ecosystem. Additionally, Apple devices work perfectly with other Apple products.
Nio is aiming for a similar thing. It has received healthy funding from giants like Tencent and Baidu. In 2017, the company went for an IPO. In fact, NIO has a couple of impressive technology patents.
The patent filing went up after funding. It needed to show investors its assets, and intangible technological assets are very valuable. Nio has patents ranging across different areas of technology.
It has general vehicle patents, electric power conversion and distribution patents, and even computing and communication technologies. The company also has research centers. Apart from these, it partnered with big names like JAC, Tata Technologies, Cerence, and more.
This is a part of its growth strategy by building a strong ecosystem so it can compete well in the space.
User Operations Efficiency
Nio also stands out in user operations. It prides itself on having fantastic user operations and many customer touchpoints. This means the company can continue providing value to its customers after selling a car. It makes the brand more engaging for its customers.
The company also hopes to create premiums through user operations. To achieve this, the company built some protocols. When a customer decides to buy something, there are two things at play – the emotional and the rational side.
The rational side would look at the product’s quality and features. NIO is investing heavily in R&D, manufacturing, and the supply chain to appeal to the rational side of the customers.
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The Marketing Strategy
It will be easier for any company to grow and compete with a clever marketing strategy. So, naturally, NIO isn’t pulling any punches regarding marketing. We have already discussed some of the cool stuff NIO does that’s different from its competitors.
Mainly battery swapping. This has become one of NIO’s biggest draws. It could completely change how consumers use electric vehicles. Instead of waiting for their car to charge, they can get a battery swap and be ready to hit the road.
That ease of use is pretty powerful if you ask us. Besides, robust technology and innovation are central to its marketing and growth strategy. The company is betting big on high-end technology.
When competing in a field like electric vehicles, cutting-edge technology is fundamental to staying relevant.
It has over 300 patents with research centers dedicated to truly mind-blowing work.
NIO House
The company aims to provide the best customer service to its loyal customers and community. That’s not an easy task. This is where something like NIO House comes in. It’s an offline channel that serves the NIO community. Think of it as an all-in-deal.
It acts as a showroom, café, and library that can cater to different customers and their needs. It’s a very innovative way of bringing loyal customers closer to the brand and increasing their loyalty and engagement. You can read about NIO’s marketing strategy in more detail here.
Technical Analysis – Expert Opinion
A strong technical analysis is also one of the tools every investor must use to build a solid understanding of their investments. NIO’s moving average looks neutral, with a classic pivot point of 10.93.
From a technical analysis standpoint, it’s a buy. You can check out live charts here. These numbers change depending on market conditions and also company performance. So, it’s always best to stay updated with the latest news.
Analyst Ratings
Analysts help you get more perspective on your investment decisions. You shouldn’t always rely on them solely. But an intelligent investor knows not to ignore them.
Looking into analyst data can give you a new perspective. The analyst rating for NIO is a buy at the moment. You can check analyst ratings here.
NIO Stock Forecast
Every serious investor should pay attention to the stock forecast of the companies they’re trying to invest in. It’s a very critical piece of information. Although these are just educated predictions and forecasts from experts, you should also use your judgment.
But a stock forecast helps you look at it from a different perspective. It’s another piece of the puzzle that gives you the bigger picture.
NIO’s stock has had its ups and downs, and it rebounded recently after a slump. The company gained about 0.5% on Thursday’s trading sessions. The major averages fell low for the second day.
EV stock reports were a mixed bag in general. While analysts think Tesla didn’t do well, other companies like NIO posted a modest gain.
Alright, let’s talk about targets. NIO has a median target of 27.98. The high estimate is 66.66, and the low of 18.72. That’s relatively low. However, the median targets show an increase of about +149.73%. This is based on an increase from the last price of 11.21.
The forecasts are for the next 12 months. From the pretty strong performance, analysts are categorizing it as a buy.
Return On Equity Forecast
ROE, or Return on Equity, is one of the most important metrics investors pay attention to. It gives you a clear understanding of how a particular company generates income on its base equity.
NIO’s ROE is forecasted to be relatively high. This is good news for investors looking into the company. It shows analysts are confident about the company’s ability to generate income from equity.
Revenue Forecast
Revenue is important for any company. It’s needed for operations and more. Revenue forecasts look phenomenal for NIO. It’s expected to grow about 52.11% per year. That’s pretty promising.
Average 1-year revenue is expected to be over $9 billion. 2-year and 3-year average revenue forecasts are expected to be over $15 and $19 billion, respectively.
Revenue Growth Forecast
Naturally, investors can also expect high revenue growth forecasts with high revenue forecasts. NIO’s revenue growth forecast is expected to outpace the market. The company’s revenue growth estimates are 52.11%, while the market is at 8.11%.
The forecasts compounded the annual growth rate of the revenue. It was calculated for 3 years based on a linear best-fit analysis.
The US auto manufacturing industry’s revenue growth rate is 35.4%. This is an estimate, and the NIO is poised to grow ahead of it.
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Earning Per Share (EPS) Forecast
Earning per share forecast, on the other hand, looks modest. 3 analysts gave their expert opinion on the matter. The average 1-year forecast is -$0.63. The average 2-year and 3-year forecasts are $0.00 and $0.69, respectively.
Here’s a breakdown of the high and low forecasts:
| High | Medium | Low | |
|---|---|---|---|
| January 2023 | $-0.42 | $-0.63 | $-0.76 |
| January 2024 | $0.31 | $0.00 | $-0.19 |
| January 2025 | $1.02 | $0.69 | $0.36 |
The company’s current EPS is $-0.86.
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Return On Asset Forecast
By analyzing return on assets, investors can tell how efficiently the company is generating profits based on its assets, and it’s a pretty important metric to look at as well. Return on assets is sometimes a better indicator than ROI. This is especially true for capital-intensive industries.
ROA isn’t distorted by high debt. This is its main advantage. However, there are disadvantages too. The company needs to have assets for calculation.
NIO’s return on asset forecast is lower than the industry’s. It’s estimated to be 22.54%. In contrast, the industry is forecasted to be 28.73%.
Valuation
NIO’s current stock valuation is $11.21. The company also has a healthy total valuation of $20.14 billion. The enterprise value of the company is a respectable $16.27 billion.
Here are some important valuation ratios you need to know about:
| Forward PE | 434.78 |
| PE Ratio | N/A |
| Forward PS | 0.19 |
| PS Ratio | 3.38 |
| PB Ratio | 3.78 |
| PEG Ratio | N/A |
| P/FCF Ratio | N/A |
Profitability
NIO has yet to hit breakeven. But there’s some good news for investors. The company is nearing breakeven. This data has been provided by 27 analysts that expect the company to break even and generate positive profits in 2024.
But the following year seems to be grim for the company. Analysts are expecting the company to incur losses in 2023.
Capitalization
Let’s dive a bit into NIO’s market capitalization. As of now, the company’s market capitalization is $20.14 billion. It’s a healthy capitalization and the world’s 756th most valuable company.
The company has come a long way from its beginning. It started 2018 with a market capitalization of $6.69 billion. Although $20.14 billion isn’t that impressive compared to giants like Tesla, with a market cap of $667.12 billion. It’s still pretty comparable with Rivian and Lucid Motors.
Liquidity
NIO faced its share of liquidity problems. But in 2018, the company partnered with JP Morgan Global Liquidity after its IPO.
This meant the company could get all hands-on-deck expert support from the JP Morgan Global Liquidity team. It can provide secure reserves and ready cash for the company’s operation.
Market Conditions
One of the reasons why NIO is becoming so attractive to investors is it’s beating the odds. It posted a record number of deliveries in September and is ramping up production too!
Although it’s expected to incur losses in 2023, the overall outlook for the company’s future looks pretty bright. The company is confident it’ll move many cars in the coming years. Its growth rate is also expected to be high, between 52% to 72% year over year.
Conclusions – Investment Recommendation
Currently, NIO stock is a strong buy for growth investors. The company’s future looks optimistic, and its innovations in technology and also other divisions look promising to say the least. The company itself is also confident about its growth.
With a revenue growth forecast more than the market, it’s pretty easy to be confident.
About the author – D. Schmidt
I’m a German stock trader who has lived around the world. I travel extensively and believe that my experiences give me a unique perspective on global markets. I love trading! It’s always exciting to see what happens next. My goal is to help people understand the game so they too can enjoy it to the fullest. In this blog, I will share some tips and tricks that helped me along the way.
