What is the Future of NIO?
Is NIO a Good Hold?
012.03.2021
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Finn Wirum
Overview
As the stock market has turned bearish NIO looks especially so, losing 21.24% just in the past week. I will have a very digestible explaining of what this means for NIO as a company, and as a stock.
NIO as a Stock
The past week has not been good for Chinese stocks. Similar to NIO, XPEV and Li Auto have plummeted 10% this week respectfully and the reason might be bigger than just a bearish market. If reports are correct, the Chinese communist party is urging local companies to leave foreign exchanges as seen with Didi Global. This is bad news if you are a stockholder because China usually gets what it wants especially when dealing with companies based in China.
NIO as a Stock Final Review
If you are a day trader, trading NIO probably won’t be a massive mistake but if you are a long-term holder I’d stay clear of NIO.
NIO as a Company
How is it performing?
NIO as a company has been doing phenomenal. Just in November alone, NIO has shipped 10,878 vehicles which is record-breaking for the company, which makes their total vehicles shipped this year top 80,000.
Final overview
Although the company is performing well, I’m not sure what will come with the stock. Most electric vehicle companies have not been seeing the highs they saw a few months ago and with the current bearish market, NIO would be a big risk.
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