Why Investors should wait to enter NIO

NIO Limited designs, manufactures, and sells electric vehicles in China, Hong Kong, the United States, the United Kingdom, and Germany. The company offers five, six, and seven-seater electric SUVs. NIO Limited was founded in 2014 and is headquartered in Shanghai, China. NIO investors had a dream run in the past year. The stock gave a return of 260% in the past year. The Electric Vehicles stocks have all done very well in the last few months. However, we are seeing some profit booking. The company released its 1Q 2020 results on May 28, 2020. Vehicles sales were $177.3 million which represents a decrease of 18% y-o-y when compared to the same quarter last year and a decrease of 53% from the fourth quarter of 2019. Total revenues including other sales fell 16% y-o-y to $193.8 million. The management attributed the lower sales due to the disruptions caused by the COVID-19. Net loss for the period was $243.3 million in the 1Q 2020 or ($0.23) per share. Net losses decreased by 41% when compared to the fourth quarter of 2019 and decreased by 36% when compared to the same period last year. Non-GAAP net loss was $234.3 million or ($0.22). Cash was $338.6 million and debt was $1.6 billion at the end of March 31, 2020. However, the company managed well in raising cash which also fueled the upward trend in the stock. At the end of April 2020, the company announced that it was able to raise about $1.0 billion from a group of strategic investors. Tencent Holdings which has been an early investor also invested further in June 2020. The company also announced on July 02, 2020, the June and 2Q 2020 delivery update. NIO delivered 10,331 vehicles in the three months ended June 2020. It represents an increase of 191% y-o-y and an increase of 169% from the previous quarter. As of June 30, 2020, cumulative deliveries of the ES8 and the ES6 reached 46,082 vehicles, of which 14,169 were delivered in 2020. It was able to reach a historical high of monthly deliveries in June. It delivered 3,740 vehicles which represent a strong 179% y-o-y growth.

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Why Investors should wait to enter NIO

Jul 31, 2020

bearish

fundamentals Analysis

[1 min Read]

blog post cover photo

Photo by: Li Zhang

NIO Limited designs, manufactures, and sells electric vehicles in China, Hong Kong, the United States, the United Kingdom, and Germany. The company offers five, six, and seven-seater electric SUVs. NIO Limited was founded in 2014 and is headquartered in Shanghai, China. NIO investors had a dream run in the past year. The stock gave a return of 260% in the past year. The Electric Vehicles stocks have all done very well in the last few months. However, we are seeing some profit booking. The company released its 1Q 2020 results on May 28, 2020. Vehicles sales were $177.3 million which represents a decrease of 18% y-o-y when compared to the same quarter last year and a decrease of 53% from the fourth quarter of 2019. Total revenues including other sales fell 16% y-o-y to $193.8 million. The management attributed the lower sales due to the disruptions caused by the COVID-19. Net loss for the period was $243.3 million in the 1Q 2020 or ($0.23) per share. Net losses decreased by 41% when compared to the fourth quarter of 2019 and decreased by 36% when compared to the same period last year. Non-GAAP net loss was $234.3 million or ($0.22). Cash was $338.6 million and debt was $1.6 billion at the end of March 31, 2020. However, the company managed well in raising cash which also fueled the upward trend in the stock. At the end of April 2020, the company announced that it was able to raise about $1.0 billion from a group of strategic investors. Tencent Holdings which has been an early investor also invested further in June 2020. The company also announced on July 02, 2020, the June and 2Q 2020 delivery update. NIO delivered 10,331 vehicles in the three months ended June 2020. It represents an increase of 191% y-o-y and an increase of 169% from the previous quarter. As of June 30, 2020, cumulative deliveries of the ES8 and the ES6 reached 46,082 vehicles, of which 14,169 were delivered in 2020. It was able to reach a historical high of monthly deliveries in June. It delivered 3,740 vehicles which represent a strong 179% y-o-y growth.
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NIO

NIO Inc.

22.19

-0.76
-3.31%

Return

-78.09%
Change % Since Posting
-9.73
Change Since Posting
12.46
Price When Posted

Metrics

11.25
Target Price
8/ 10
Confidence
2-6 Months
Timeframe
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Earnings Per Share
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Financials
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Management
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Price to Earnings Ratio
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Dividend
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