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NIO Limited is China’s answer to the vastly popular American electric car manufacturer, Tesla Inc. The company designs and manufactures smart electric cars and is currently listed on the NYSE as NIO.
The company launched its IPO in 2018 and the NIO stock has grown over 15x since the past year. Interestingly enough, NIO Limited was nearly bankrupt in 2020.
But with 2x sales soon after and a strong January 2021 push with its new electric sedan, the company and the NIO stock itself both seem to be slowly reaching financial stability.
Does this mean that Indian investors can benefit from the NIO stock? In this blog, we will try to answer this question by evaluating the NIO stock, its track record
1. Stock Name: NIO Limited (NIO)
2. Share Price: $57.98*
3. Market Cap: $90.386 Billion
4. Beta: 2.79 (Risky)
5. P/E Ratio: N/A
6. 52 Week Low: $2.11
7. 52 Week High: $66.99
Fun Fact: NIO is called “Weilai” in Chinese which roughly translates to “Blue Sky Coming”
The upward trend in the NIO stock's performance was widely attributed to the company's launch of new products and the business model that is helping them rise above the debt they accumulated.
NIO primarily makes electric cars and currently has 9 different EVs on the road (or about to be launched).
1. NIO ET7
2. NIO EC6
3. NIO ES8
4. NIO ES6
5. NIO EP9
6. NIO House
7. NIO Power
8. NIO Service
9. NIO Formula E
1. Sales growth of 11% (1.37 million units sold) in 2020 as per official Chinese data
2. Expected NEV sales estimated to be approximately 1.8 million units in 2021
3. NIO’s innovative Battery as a Service (BaaS) model that allows electric car owners to rent batteries
4. Prospective business expansion into Europe in late 2021
5. Gradual mindset shift towards embracing EVs across the world
1. NIO outsources its EV manufacturing to third party entities
2. Traditional car manufacturers like Volkswagen and General Motors are expected to enter the EV space in the coming future
3. Growth of Tesla Inc, the most popular EV and autonomous vehicle manufacturers in the world
According to market data, NIO stock has been surging over the past year. However, NIO did nearly go bankrupt in the same year while it’s facing ever-increasing competition from EV manufacturers like Nikola.
Thus, whether or not you should invest in NIO stock from India would depend on your investment goals and risk appetite. The best way to understand both is by using the Cube Wealth app and consulting a Wealth Coach.
The Cube Wealth app allows you to invest in the best US stocks like NIO, TSLA, AMZN, GOOGL, AAPL, etc. for as low as $1. Here are the two ways you can invest in the best US stocks using Cube Wealth:
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Ans. NIO is a Chinese electric vehicle (EV) manufacturer that has gained significant attention in the global EV market. Investing in NIO stock can be appealing for those interested in the growth of the electric vehicle industry and believe in the company's potential to disrupt the automotive market.
Ans. To invest in NIO stock, you need to open a brokerage account with a reputable brokerage firm, such as E*TRADE, Fidelity, or Charles Schwab. Once your account is set up, you can place buy orders for NIO shares through the brokerage's trading platform.
Ans. NIO is traded on the New York Stock Exchange (NYSE) under the symbol "NIO."
Ans. Investing in individual stocks, especially in a volatile industry like electric vehicles, carries risks. NIO's stock price can be influenced by factors such as market sentiment, competition, regulatory changes, and the company's performance. It's crucial to diversify your investment portfolio to manage risk effectively.
Investing in NIO stock can be a compelling opportunity for those interested in the growth of the electric vehicle industry and believe in the company's potential to disrupt the automotive market. However, it's essential to approach such investments with caution and conduct thorough research. NIO stock, like all individual stocks, comes with its own set of risks, and market conditions can be volatile. Therefore, it is advisable to carefully assess your financial goals, risk tolerance, and investment strategy before investing in NIO stock. Consulting with a financial advisor can provide valuable insights and guidance to make informed investment decisions.
*Note: All facts & figures are as of 04-02-2021. Download the Cube Wealth app for the latest information.
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