NIO Inc. (NIO)

Nio has been a successful company when it comes to targeting the booming electric auto market in Europe and China. The truth is that the Chinese-based EV is responsible for some of the most dynamic changes in the market. But since COVID-19, the stock price of the Nio has had its fair share of ups and downs.

Investors have to look at Nio without bringing Tesla into the fold. Contrary to misguided perception, Nio does not manufacture its electric cars. The functional model of Nio depends on partnerships with auto manufacturers of a specific state. In China, Li Auto and Nio are close competitors of Tesla.

It is vital to understand that China is the largest RV market in the world and Nio is at the forefront to be the next leader. But in no time, many players have emerged as top-tier competitors of Tesla. In early April, Edison Yu, a Deutsche Bank analyst estimates that the stock price of Nio can come down to 65% amidst the peak-COVID-19 period.

The official word from the Nio affirms that COVID-19 managed to disrupt its growth drive and created unexpected challenges. The prediction came true and it was only a matter of time before Nio decided to shut down its EV production due to the resurgence of the pandemic crisis in China.

After March, Nio started to deliver ET7, its first original electric sedan. It is a rival of long-range model S. What’s interesting is that many Tesla holders have purchased shares of Nio. This alone sets a new precedent and hints at the long-term growth potential of the Nio.

Nio Inc Statistical Overview

Nio Inc - ADR: An Overview

Nio Inc. is involved in designing, manufacturing, and development of high-end electric vehicles. In 2022, more and more people gravitate toward smart EVs to reduce their carbon footprint. But unlike other market players, Nio has managed to uniquely position itself in the European and Chinese auto industry.

The top-tier products of Nio include ES6, ES8, ET7, and EC6. At its core, Nio develops state-of-the-art and advanced battery swapping tech along with autonomous driving technologies. Nio serves as a Chinese holding company that focuses on a unique way to research, manufacture, and develop smart and premium EVs.

The electric vehicles of Nio use dedicated autonomous driving tech that involves an ultra-sensing system and computing platform. On top of Nio Adam and Nio Aquila, the company is also involved in offering internet service for smart EVs and long-term battery warranties.

Nio offers its users express valet and home charging services. The company also provides other power-based solutions like public accessible charging, battery swapping, and mobile power charging trucks. Furthermore, Nio provides additional services like service packaging, vehicle financing, arranging battery payment, and registration of the vehicle’s license plate. Li Hong Qin and Bin Li laid the foundation of the company in November 2014. Currently, the headquarters of Nio is in Jiading, China.

Nio Stock Forecast 2022

Some experts also predict that the stock price of Nio will significantly move up by the end of 2022. You can expect the highest and the lowest stock price of Nio to hit $87 and $45. On average, Nio’s stock price would remain at $66 throughout 2022.

Overall, most analysts share our opinion that investors should be open to invest in Nio. Remember that when it comes to the Nio stock price, the factors that affect the most include competitive drive, changing dynamics of the Chinese market, sales of smart EVs, and manufacturing costs.

In 2022, most analysts concur that the stock price of the Nio will have a gradual increase. The most optimistic data highlights that the Nio stock price will cross $80 in 2022. Conversely, the most conservative forecast hints that the Nio stock price will be around $40. On average, you can expect the Nio stock price to stay at $66 by the end of 2022.

In 2022, many investors have decided to hop aboard the ride of the electric car sector. And why wouldn’t they, it is still a new and promising sector that continues to transform through new tech innovations. In terms of investments, buying Nio stock makes logical and practical sense.

Like most market experts, our top stock market analysts support the decision to invest in Nio stock. And that’s because Nio continues to change the way auto manufacturers design and develop smart and high-performance EVs. As compared to global peers like Lucid and Tesla, the trading of Nio shows long-term potential and comes with attractive discounts.

Chinese stock market analysts predict that the growth rate of Nio would increase to 79% and tie together with the forecasted growth of the EV market in China. Optimistically, you can expect Nio’s stock price to range from $75 to $87 by the end of 2022-23.

Nio Stock 2021

In Q4 2021, Nio published an unclear report about its long-term growth potential and COVID-19-induced losses. Technically, you can observe from the chart that the Nio stock price months of the falling streak. In fact, the stock price of Nio has lost over 50% of its value in a single year.

Our technical analysis of Nio’s stock price affirms that it would take some time before Nio can regain its original value in the stock market. From 2018 to 2019 to 2020, Nio managed to remain under the radar in terms of its stock price.

With more fear around inflation and rising interest rates, the stock price of Nio may tumble. Not to mention, Nio also experienced a shortage of major components like batteries and chips that had an impact on its stock price. Despite the pandemic crisis, Nio managed to double its EV sales in 2021. However, the close competitors of Nio managed to triple their sales and quadruple their revenue generation in 2021.

Historical Outlook of Nio Stock’s Price

From 2018 up until 2021, it would be fair to state that Nio Stock has had significant changes. But the 2020 pandemic crisis had the most significant impact on the Nio stock price. In 2018, Nio stock had the highest price on the record that managed to increase its value in a short time.

But in less than two years, the investors were trading Nio shares at a mere $5 in 2020. But in the eight months, the stock price of the Nio started to grow. In fact, Nio’s stock price grew by more than 1000% in the first eight months of 2021. And after crossing the threshold of $70 in 2021, the main challenge for Nio stock is to retain that price point in the stock market.

As of now, the Nio stock has more value than its initial public offering price. After gaining gradual market value in 2019, Nio lost over 50% of its stock price amidst a pandemic crisis. But now, Nio stock is on its way to garner over 40% of its value in stock price.

It is crucial to understand that from 2018 to 2020, Nio stock was undervalued 55%. Ironically, before the dwindling stock price of Nio, the EV leader had a whopping 117% revenue increase. Although market confidence in Nio is not completely renewed, investors believe Nio is bound to play a crucial role to advance smart EVs and increase its stock price.

Is Nio Stock Falling?

Earlier in April, Nio had a rising shift in the share prices that later on had a significant reversal. The major reason for this reversal comes down to enforced lockdown measures in Shanghai to curb the spread of the COVID virus.

As of now, Nio investors are concerned about the impact of these severe and prolonged lockdowns on the company’s ability to maintain operations in the factory. Although investors are not planning to shift gears, the company’s portfolio might take a hit due to lockdowns and restrictions in Shanghai.

As of late April, the share price of Nio stock was reduced by 4.8%. What’s worse is that despite no quarantine areas and no positive COVID-19 cases, the official authorities intend to enforce long-term restrictions and lockdowns that would have an impact on factory operations and the supply chain.

Like other investors, Nio investors have started to question the severity of restrictions and whether or not it would propel the company to halt or suspend factory operations. As more financial analysts and experts weigh in on the situation, it has become clear that lockdowns in Shanghai will have some impact on the Nio stock.

Still, the EV manufacturer is optimistic about future growth and serves as a compelling option for potential long-term investors. As long as investors can tolerate the short-term market volatility, they can reap the benefits of Nio’s long-term market stability and growth.

How to Invest in Nio Stocks

Despite how many stocks you want to buy, the most convenient way is to opt for an online broker. If you’re overwhelmed by the number of online brokers, then opt for the most used online broker like eToro. Like investing in other stocks, eToro would allow you to buy and invest in Bio stocks easily.

Think of it as a streamlined approach to buy Nio stocks and make logical stock investment decisions. Our experts have tested eToro and it stands as arguably the most effective and efficient online broker to buy or invest in stocks.

Where to Buy Nio Stock

Gone are the days when investors had no choice but to rely on traditional ways to invest in different stocks. Today, you can use a dedicated online broker solution like eToro and keep an eye on all your investments in a centralized fashion.

Here’s how you can start using the eToro platform:

Step 1: Open eToro Account

Your first step should be to fill out the basic information in the application form of eToro in order to open an online broker account.

Step 2: Upload ID

Next, upload a relevant form of identification like a driver’s license, passport, last three months’ bank statement, or utility bill.

Step 3: Include Funds

Before investing in Nio or any stock, make sure to add sufficient funds to your new eToro account. You can use your PayPal account, debit/credit card, or straight-up bank wire transfer to transfer funds into the online broker account.

Step 4: Search for Nio Stocks

Utilize the search button on the online broker account and opt for high-performance stocks like Nio. And once you’ve decided to buy Nio stocks, click trade in order to process specific stock order.

Final Thoughts

Objectively, the financial health of Nio continues to improve in 2022. With a consistent increase in its stock price, the debt and liquidity rumors are also put to rest. Of course, Nio has incurred significant losses but it wants to redefine its EV position and gain significant revenue.

With new and robust electric cars, Nio wants to make the most out of the European market through battery innovations. This, in turn, would pave the way for more growth and create more EV wars. But as the post-pandemic era begins, chip supply can create a hurdle for Nio. Also, battery supplies can have a more negative impact on the stock price in the coming years.

Although there is a gradual incremental improvement in the stock price of Nio, there is also strong uncertainty attached to it. In fact, it is one of the main reasons many investors are reluctant to make long-term investments in Nio stock.

In a broad sense, the good news is that the stock price of the Nio continues to recover from its March lows. In hindsight, financial analysts and market experts want to see how the promising growth potential of Nio plays around in the next three to five years.