#stocks #stockmarket #stockstobuy
Well, folks, let me tell you about NIO Inc. (NIO). The company's stock closed at $10.03 in the most recent trading day, which is quite a bargain considering its past performance. Yes, shares have lost 15.51% over the past month, but NIO is looking to make a comeback as it nears its next earnings release on March 1, 2023. Now, I know what you're thinking, with a Zacks Rank of #4 (Sell), should we be concerned? Well, maybe, but let's not forget that China is leading the charge in the EV industry, responsible for two-thirds of global sales, and the government is making sure it stays that way with tax breaks, subsidies, and other incentives. NIO is definitely competing with the likes of Tesla, which is also betting on the Chinese market, but here's where NIO has an advantage - rapid battery swapping technology. It takes just three minutes for NIO's cars to swap out used batteries for fully charged new ones through a network of swapping stations, substantially faster than Tesla's 15 minutes to charge for 200 miles at a supercharger. Now, let's talk about the elephant in the room, NIO's unprofitability, which may be the reason for the recent weakness in its stock performance. But hey, NIO has the support of the Chinese government, which bailed them out with a whopping $1.4 billion in 2020. And with a price-to-sales (P/S) multiple of 2.8, NIO is significantly cheaper than Tesla, which trades for 8.6 times its revenue. Here's something to get excited about, a Reuters report just came out that NIO plans to build a factory making mid-market cars for export to Europe. This could be a game-changer and ignite NIO stock today. The deal may also complicate NIO's relationship with state-backed JAC Motors, the contract manufacturer attached to it in the 2020 government bailout. But, let's not forget, NIO has enough financial strength to make an effort at scaled expansion, with $2.5 billion of cash in the bank at the end of September. In conclusion, although NIO stock is down 54% over the last year, it's still worth $17 billion, and with the potential for scaled expansion and technological innovation, NIO could be a lucrative opportunity for daring investors. So, what do you say? Are you ready to take the plunge and buy the dip or stay far away?
Sources: https://finance.yahoo.com/news/nio-in...
https://www.fool.com/investing/2023/0...
https://investorplace.com/2023/02/nio...
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