NIO - NIO Limited

NYSE - NYSE Delayed Price. Currency in USD
2.2600
-0.0100 (-0.44%)
At close: 4:01PM EST

2.2600 0.00 (0.00%)
After hours: 6:11PM EST

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Previous Close2.2700
Open2.3200
Bid2.2600 x 40700
Ask2.2700 x 45900
Day's Range2.2000 - 2.3400
52 Week Range1.1900 - 10.6400
Volume31,826,159
Avg. Volume37,864,506
Market Cap2.414B
Beta (3Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-44.1020
Earnings DateSep 24, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est3.05
  • Is It Finally Time to Go Long NIO Stock? This Analyst Remains Sidelined
    SmarterAnalyst

    Is It Finally Time to Go Long NIO Stock? This Analyst Remains Sidelined

    Chinese automaker NIO (NIO) is at a crossroads.While investors were excited at the beginning of the year, this has waned as the company is facing increased challenges including a large drop in ES8 deliveries between Q4 2018 and Q1 2019, as well as a recall of about 5,000 vehicles. While the Chinese economy is slowing, the government also reduced the electric car subsidy by 50%, making NIO vehicles more expensive for customers. And on the financial end, the company was losing money with each sale during the first quarter.So what's next for NIO stock? UBS analyst Paul Gong is on the sidelines for now, as he reiterates a Neutral rating with a $4.00 price target, which implies nearly 17% upside from current levels.A major factor impacting Gong’s outlook for NIO is the ES8. The analyst says he cut his “ES8 sales forecast by 35% and gross margin by 9pct for FY19 amid a challenging market, the phasing out of subsidies, and the recent recall on battery safety issues.” The battery recall is a major challenge for NIO — of the ~17,000 cars it has delivered, 5,000 were affected. This is not unheard of for automakers — even the most established brands go through this. But given the immaturity and inexperience of NIO, the hurdle is a bit higher than for the average automaker.Financially, Gong believes “the expected losses in 2019/20 are likely to trigger several rounds of equity financing to keep NIO solvent given current levels of leverage,” which is not dissimilar to Tesla. As a result of “uncertainties over the level of projected equity dilution,” the stock price remains unstable. While shares have rebounded since hitting bottom in June, Gong still says “uncertainty remains.”One positive note from Gong is that he is “reasonably constructive on ES6 order intake and delivery,” believing “the model's performance is more balanced and it has a larger target audience than the ES8.” The ES6 has an 84kWh battery option, which can provide a range of over 500km. Gong expects “the ES6 could record 2k+ monthly deliveries in H219, making it the best-selling premium car from a local brand.”TipRanks suggests optimism with some caution baked into expectations when it comes to Wall Street’s majority perspective on NIO. Out of 6 analysts polled in the last 12 months, 4 rate a Buy on the stock while one maintains Hold and another one suggests Sell. The 12-month average price target stands at $7.90, marking nearly 130% in upside potential from where the stock is currently trading.Read more: NIO Stock Still Worth $6.30, Says Deutsche Bank More recent articles from Smarter Analyst: * 3 "Strong Buy" Software Stocks from Credit Suisse Annual Technology Conference * RBC: 3 "Strong Buy" Stocks That Could Step on the Gas in 2020 * Deutsche Bank: 3 "Strong Buy" Stocks to Snap Up Now * 3 Under-The-Radar Dividend Stocks with over 9% Dividend Yield

  • GuruFocus.com

    NIO: Punishing Dilution Inbound

    The Chinese electric car company is on a financial knife-edge Continue reading...

  • Benzinga

    Tesla Model 3s Can Earn Subsidies In China

    Tesla Inc (NASDAQ: TSLA ) traded up 1.8% Friday on reports that Model 3s produced at its Shanghai plant would qualify for Chinese subsidies. China’s Ministry of Industry and Information Technology included ...

  • MarketWatch

    Nio's stock rallies after 4th straight month of delivery increases

    Shares of Nio Inc. rallied 3.7% in active premarket trading Thursday, after the China-based electric vehicle maker disclosed an uptick in November deliveries, to mark a fourth straight monthly increase. The company said it delivered 2,528 vehicles last month, up from 2,526 deliveries in October. Of the total, Nio delivered 2,067 ES6s, the company's 5-seater high-performance SUV, and 461 ES8s, the 7-seater SUV. "In November, we achieved another month of solid delivery results as we expanded our sales network by adding more NIO Spaces," said Founder and Chief Executive William Li. "By the end of November, NIO and our partners successfully opened 37 NIO Spaces in total." The stock has tumbled 18% over the past three months through Wednesday, while shares of U.S.-based rival Tesla Inc. have run up 45% and the S&P 500 has gained 4.6%.

  • Benzinga

    Nio Sustains Sales Momentum In November, Launches Third SUV

    ADR (NYSE: NIO), often called as China's Tesla Inc(NASDAQ: TSLA), churned in strong November deliveries, sending its shares higher. November marked the fourth consecutive month of expanding deliveries following a dismal performance in the summer, when deliveries took a tumble on a host of factors, including weaker domestic macroeconomic condition and a cut in EV subsidies. The turnaround was echoed in comments by William Li, Nio's founder, chairman and CEO, who suggested in late November EV sales in China are on the road to recovery.

  • GlobeNewswire

    NIO Inc. Provides November 2019 Delivery Update

    NIO Inc. (“NIO” or the “Company”) (NIO), a pioneer in China’s premium electric vehicle market, today provided its November 2019 delivery results. As of November 30, 2019, aggregate deliveries of the Company’s ES6 and ES8 reached 28,743 vehicles, of which 17,395 vehicles were delivered in 2019.

  • Tesla Competitor NIO Launches Another SUV in China
    Bloomberg

    Tesla Competitor NIO Launches Another SUV in China

    (Bloomberg) -- Cash-strapped electric-car upstart NIO Inc. is introducing its third sport utility vehicle, a streamlined model aimed at spurring demand in China’s slowing EV market.NIO didn’t disclose the price for the electric SUV coupe, which comes with a panoramic-view window and is set to compete against vehicles such as the Mercedes-Benz GLC Coupe and Tesla Inc.’s Model Y. NIO’s existing models are the ES8 and ES6 SUVs, and the EP9 performance car.“Coupes fall in a niche market in China and it’s really hard to position this kind of product,” said Yale Zhang, managing director of Shanghai-based consultancy AutoForesight. “But if they only aim at selling hundreds of cars a month, it should be fine.”The unprofitable carmaker is battling an unprecedented slump in Chinese auto sales, including electric vehicles, as the country’s economy cools. The company also faces intensifying competition from the likes of Tesla and Daimler AG just as some investors scrutinize its funding situation.Backed by technology giant Tencent Holdings Ltd., NIO sought $200 million from founder William Li and a Tencent affiliate -- though hasn’t clarified whether the investment has been completed -- and has also reduced its workforce. U.S. shares of NIO have dropped more than 60% since the company’s initial public offering in New York last year.By the end of the third quarter, NIO had cut its staff to 7,800 from 9,900 in January. Having burned through more than $5 billion in four years, the company failed in an attempt to get local government funding, according to media reports.China’s EV sales have slumped for four consecutive months, while the overall auto market is down in 16 of the 17 past months. That’s impacting fundraising for EV startups in China, according to rival XPeng Motor. China is raising its 2025 sales target for electrified cars as the government tries to spur the industry.(Updates with government sales target in seventh paragraph)To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at czhang714@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Ville Heiskanen, Angus WhitleyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Billionaires Investing in China Electric Cars Face Shakeout
    Bloomberg

    Billionaires Investing in China Electric Cars Face Shakeout

    (Bloomberg) -- Some of China’s wealthiest tycoons steered billions of dollars into electric-car companies in order to fuel the country’s dreams of becoming a leader in the field. Now a reckoning may be looming as car sales slow and the government reduces subsidies for the nascent industry.That leaves the flagship companies of Jack Ma, Pony Ma, Hui Ka Yan and Robin Li facing an increasingly steep path to profitability on their bets that electric vehicles can be smartphones-on-wheels connecting passengers to other businesses. Their capital, along with dozens of startups raising $18 billion, helped inflate an electric bubble that now looks to be in danger of popping.China’s car market is experiencing a prolonged sales slump, prompting EV makers to slash earnings outlooks. With China considering further cuts to the subsidies for consumer purchases in order to force automakers to compete on their own, a shakeout is looming that not even the tycoons’ support may be able to prevent, said Rachel Miu, an analyst with DBS Group Holdings Ltd. in Hong Kong. “For the new kids on the block in the EV space, it’s a steep uphill climb,” she said.Here’s what China’s richest people have to show for their companies’ EV investments:Alibaba: Xpeng Coupe, AccusationsJack Ma stepped down as chairman of Alibaba Group Holding Ltd. in September after amassing a $40 billion-plus fortune, but China’s richest man retains his board seat -- and influence -- at the e-commerce emporium he created. Alibaba has participated in several funding rounds for Guangzhou Xiaopeng Motors Technology Co., or Xpeng Motors, including one in 2018 that raised 2.2 billion yuan ($313 million) for the carmaker co-founded by former Alibaba executive He Xiaopeng.Xpeng launched its first vehicle, the five-seat G3 SUV, last year and has sold 11,940 vehicles so far this year, according to data compiled by Bloomberg.The company, founded in 2014, also is teaming up with more-established automakers. A factory built with Haima Automobile Co. can produce 150,000 EVs annually. Another should soon begin assembling the P7 coupe, scheduled to begin deliveries next year.The journey hasn’t been without controversy, though, as some engineers bound for Xpeng stand accused of stealing from their ex-employers in the U.S. In March, Tesla Inc. sued a former engineer, alleging he uploaded files, directories and copies of source code to his personal cloud storage account before resigning. Also, a former Apple Inc. engineer was indicted last year for allegedly pilfering self-driving car secrets on his way to an Xpeng job. His trial is upcoming.Xpeng wasn’t accused of wrongdoing.“We are very adamant that we pursue our own R&D,” President Brian Gu said. “Copyright is very important to us.”Hangzhou-based Alibaba, the second-largest shareholder in Xpeng, didn’t answer specific questions about the automaker.Xiaomi Corp., the consumer-electronics company, participated in another $400 million fundraising round, the automaker said Nov. 13.Tencent: NIO Lists, Then CutsPony Ma’s Tencent Holdings Ltd., whose WeChat messaging app helped make him China’s second-richest person, led a $1 billion investment round in NIO Inc. in 2017. With more than 26,000 vehicles sold, NIO’s one of the few Chinese startups making multiple models, and it beat rivals with an initial public offering in New York last year.But losses piled up with the overall sales slump and as the company, which has been described as “China’s Tesla,” plowed money into marketing and real estate. It sponsored a Bruno Mars concert and opened luxury clubs for NIO owners that feature showrooms, coffee bars and performance spaces. By August the company had opened 19 NIO Houses over 22 months, and combined rental expenses were equivalent to 6.3% of revenue during the 12 months ended March, according to Bloomberg Intelligence.“NIO chooses the direct sales mode and pays great attention to user experience,” the company said. It doesn’t plan to close its existing clubs -- or open new ones.NIO lost $2.8 billion in the 12 months ended June on revenue of $1.2 billion, and its shares have plunged this year. The Shanghai-based company cut about 20% of its workforce through September. Separately, NIO has said that Tencent and Chief Executive Officer William Li planned to inject $100 million each into the company, though the carmaker hasn’t clarified whether the investment has been completed.“Our sales have been under pressure since the subsidies went down,” Li said. “It has come to a new era that one can only win customers with quality products and services.”Shenzhen-based Tencent expressed support for EVs but didn’t answer specific questions about NIO.Evergrande: High HopesOne of the more startling entrants in the EV industry is property developer China Evergrande Group, which declared it wanted to be the world’s biggest manufacturer within three to five years. That means surpassing Tesla, which just opened a factory in Shanghai. Between September 2018 and June 2019, Evergrande invested more than $3.8 billion in EV-related companies, according to Bloomberg Intelligence, and will start producing its Hengchi brand next year.Evergrande, which wants to open 10 production bases, plans to spend 45 billion yuan on new-energy vehicles between 2019 and 2021. On Nov. 10, a unit announced it would spend almost $3 billion to boost its stake in National Electric Vehicle Sweden AB to 82% from 68%.Billionaire chairman and founder Hui Ka Yan, who’s diversifying into businesses such as soccer and health care, acknowledged there isn’t much overlap between Evergrande’s real-estate business and its EV ambitions.“We don’t have any talent, technology, experience, or production base in manufacturing cars,” Hui said. “How can we compete with the century-old automakers in the world?”His answer: by opening Evergrande’s wallet.“Whatever core technology and company we can buy, we will buy,” he said.Yet Hui’s whatever-it-takes strategy may take a toll on Evergrande because of the cash-burning nature of NEV investments. The company’s forecast of spending 45 billion yuan is probably an underestimate, and that may exacerbate its cash crunch, according to BI.“This could crimp its home-sales margin given an urgency to sustain price cuts to boost cash collection from sales,” analyst Kristy Hung said in a Nov. 22 report.Baidu: WM Factories, LawsuitRobin Li, the CEO of China’s dominant internet search-engine company, made WM Motor Technology Co. part of Baidu Inc.’s move into autonomous driving. Baidu led a fundraising round this year that generated 3 billion yuan for the Shanghai-based automaker. Baidu owns a 13% stake.WM rolled out an electric SUV last year and has delivered more than 19,000 vehicles, Chief Strategy Officer Rupert Mitchell said. So far this year, WM sold 14,273 of its battery-powered SUVs, according to data compiled by Bloomberg. That puts WM behind market leader BYD Co. -- backed by Warren Buffett -- and NIO, but ahead of Xpeng. WM launched a second SUV model on Nov. 22.WM has an advantage over rivals started by employees from internet companies, Mitchell said. Founder Freeman Shen used to run Volvo Car Group in China.“We are not moonlighters from the technology industry that are having a crack at mass-market automotive,” he said.Volvo parent Zhejiang Geely Holding Group has sued WM, seeking 2.1 billion yuan compensation for alleged copyright infringement, Chinese state media reported in September. WM has denied wrongdoing.WM is producing vehicles at fully owned factories, which helps maintain quality control, Mitchell said. The company, which is opening a second factory next year that can make 150,000 vehicles annually, wants to raise another $1 billion, Mitchell said.Baidu declined to comment.(Updates 16th paragraph to clarify status of NIO investment)\--With assistance from Emma Dong, Tian Ying and Gao Yuan.To contact Bloomberg News staff for this story: Bruce Einhorn in Hong Kong at beinhorn1@bloomberg.net;Chunying Zhang in Shanghai at czhang714@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, ;Emma O'Brien at eobrien6@bloomberg.net, Michael TigheFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Don’t Expect Rising EV Sales in China to Boost Nio Stock
    InvestorPlace

    Don’t Expect Rising EV Sales in China to Boost Nio Stock

    Nio (NYSE:NIO) stock has reversed course in recent weeks. The stock had long fallen on mounting losses and slowing sales in the Chinese vehicle market. However, improving conditions and a key partner helped Nio stock to recover.Source: Sundry Photography / Shutterstock.com Unfortunately, NIO remains one of hundreds of electric vehicle (EV) makers in the market. Moreover, the company continues to lose money. Its current stock price makes stock dilution a limited solution at best for more funding. Although the Chinese EV market will likely continue its growth, investors should not assume that the benefits will accrue to Nio stock. The Chinese EV Market and Nio StockTo be sure, EVs look to have a bright future in the People's Republic. Qian Yang, a doctoral candidate in finance at Michigan State University, made two critical points.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFirst, electric vehicles remain a bright spot in the Chinese automotive market. While overall vehicle sales fell by 10.3%, sales of "non-conventional vehicles," which include EVs, increased by 20.8%. * 7 Strong Buy Stocks That Are Bargains Right Now Secondly, while EV sales growth has fallen, a 67% reduction in subsidies is the likely explanation. Yang believes removing subsidies will improve profitability by shifting production more toward premium vehicles. He also thinks more mergers and acquisitions will consolidate the industry and improve efficiency.However, despite optimism about the overall EV market, I have long encouraged investors to avoid Nio stock.NIO is only one of many EV manufacturers in the country. The market had 486 companies in this business as of March. These manufacturers produced nearly 1.3 million EVs in 2018. Of those, Nio made only 11,348 of those cars. Nio stock gets the attention precisely because a Nio stock exists. No other Chinese EV companies have made the effort to launch an initial public offering on U.S. exchanges.Moreover, NIO and its Chinese peers must compete with Tesla (NASDAQ:TSLA), who is building a Gigafactory in Shanghai. Volkswagen (OTCMKTS:VWAPY) has likewise made bets on the Chinese EV market. One cannot also rule out Ford (NYSE:F), General Motors (NYSE:GM), and other large automakers making similar moves. Move Higher Makes NIO a "Lottery Stock"My advice to avoid Nio stock has mostly proven correct. NIO fell deep into penny stock status. Investors also stopped calling it the "Tesla of China" as the equity kept dropping.However, in recent weeks, it has bounced from a low of $1.19 per share. Now trading at about $2.20 per share, investors have bid the Nio stock price higher on signs of optimism.Nio stock bull Luke Lango points to a collaboration with Intel (NASDAQ:INTC) on self-driving cars. He speculates that Chinese EV makers will sell between seven and ten million vehicles per year by 2030. He believes that could amount to annual sales of 375,000 units by that time or 5% of the market.His theory could prove correct. However, given a current market share of 1%, I feel less optimistic. In time, the market will begin to consolidate and only a handful of companies will survive. Where this leaves NIO remains unclear. Analysts predict losses beyond 2021, so I do not know where Nio will find the capital to take over other companies. In the end, investors need to prepare for the likelihood that companies who do not trade on U.S. exchanges may take the lead.Traders should also note that Mr. Lango refers to Nio stock as a "lottery stock" despite his bullish stance. If investors buy into this rally, they should treat NIO as such. Final ThoughtsAlthough it has begun to recover, investors should remain cautious on Nio stock. Industry researchers such as Qian Yang point to a bright future for the Chinese EV market. While I agree with his assessment, this does not necessarily mean that NIO will benefit in the end.At its current price, the cost of one share of Nio resembles the cost of a lottery ticket. If one chooses to spend this money on Nio stock instead, fine. However, much like with lottery ticket money, one should hope for the best but prepare themselves to lose it all. As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Strong Buy Stocks That Are Bargains Right Now * 7 Excellent Bank Stocks Worth an Investment * 4 Small-Cap, Big-Dividend Stocks The post Don't Expect Rising EV Sales in China to Boost Nio Stock appeared first on InvestorPlace.

  • Benzinga

    Bulls And Bears Of The Week: Nio, Target, Apple and More

    Benzinga has examined prospects for many investor favorite stocks over the past week. Bearish calls included two leaders in computing and a well-known shoe retailer. Much of the market and economic news was overshadowed this week by drama in Washington, D.C. as the impeachment hearings continued on Capitol Hill, though it was hard to see much of an effect on the markets.

  • Cautious Optimism Is Finally Warranted for NIO Stock
    InvestorPlace

    Cautious Optimism Is Finally Warranted for NIO Stock

    It has been a rough ride for shares of Chinese premium electric vehicle maker NIO (NYSE:NIO) (no pun intended). At one point in time, NIO was being hyped as the Tesla (NASDAQ:TSLA) of China. The company was featured on a 60 Minutes special which shone a favorable light on China's electric vehicle trends, and a particularly favorable light on NIO's competitive positioning in that market. Investors got bullish and Nio stock popped from below $6 in late 2018, to above $10 by March 2019.Source: Carrie Fereday / Shutterstock.com Then reality hit. Specifically, China's economy continued to slow amid escalating U.S.-China trade tensions. As China's economy slowed, so did auto demand. The slowdown in the auto market hit the red-hot electric vehicle space, which had previously been a major growth vertical. By mid-2019, EV sales in China were dropping. * 7 Companies Using Artificial Intelligence to Outperform the Market Against this unfavorable backdrop, NIO struggled to sell its premium EVs. Delivery volumes dropped big. So did revenues. Margins didn't make any progress. Losses piled up. NIO stock tanked from above $10 in March 2019 to just over $1 in early November 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut for the first time this year, there's reason to be cautiously optimistic on Nio stock. Why? A variety of reasons, the sum of which paint a favorable picture of where NIO stock could go over the next few quarters.I think it's time to buy the dip in Nio stock. Sure, this stock is still very risky, but there's a ton of reward potential, too, and with all of the important trends now moving in NIO's favor, it increasingly appears that the potential reward here outweighs the potential risk. Most Trends Are Moving in Favor of NIO StockThe big idea behind the bull thesis on Nio stock today is that all of the important trends surrounding NIO are finally moving in favor of the company.First, China's economy is rebounding. Since January 2018, China's economy has been stuck in a secular slowdown. But over the past few months, U.S.-China trade tensions have eased, and China's economy has begun to show signs of life: consumer sales are stabilizing, Purchasers Manager Index readings are rebounding, and OECD leading indicators for China are improving.The implication? The macro environment for NIO is going from working against Nio stock, to working for Nio stock.Second, Chinese stocks are coming back into favor. From January 2018 to early August 2019, the iShares MSCI China A ETF (NYSEARCA:CNYA) shed nearly 30%. Since then, CNYA has risen more than 10%. As a result, Chinese stocks are coming back into favor, so the macro sentiment headwind which hurt NIO stock over the past two years is turning into a sentiment tailwind.Third, NIO's delivery trends are reversing course. NIO has had trouble selling cars in a slowing Chinese economy. First quarter 2019 delivery volumes came in well below their fourth quarter 2018 total. Second quarter deliveries were less than first quarter deliveries. But, third quarter deliveries came in well above Q2 deliveries, and the most recent October delivery number was the best number seen this year. NIO is finally starting to ramp up delivery volumes behind healthy ES6 demand.Big picture: Nio stock was hit by a plethora of headwinds over the past few quarters. For the most part, those headwinds are now tailwinds. Naturally, this means that the worst may be over for NIO stock. Shares Could Explode HigherIf things do work out for NIO -- that is, if this company can successfully craft an enduring niche for itself as the de facto premium EV maker in China -- then NIO stock could explode higher from current levels should the tide turn.The logic is simple. China is the world's largest auto market. Electric vehicle penetration in China is relatively high, and going higher thanks to legislation promoting wider adoption of EVs and technological advances pushing down the prices. Thus, China's EV market one day will be the largest EV market in the world. If NIO controls just a small slice of that market (the premium end) at favorable price points and margins, then NIO could one day report sizable profits.Here are the numbers: China's passenger car market measures just under 25 million vehicles sold per year. It's growing at a steady 2%-plus annual clip. This growth should persist thanks to urbanization trends across China. China's auto market should measure 30 million vehicles by 2030. Of those approximately 25 million vehicles sold in 2018, a little over a million were EVs, implying an EV penetration of 4-5%. Both of those figures have grown at an exponential rate, and will continue to grow as EV adoption trends gain momentum.By 2030, China could easily be looking at a 25% EV penetration rate in a 30 million car market, implying 7.5 million annual EV unit sales. In 2019, NIO projects to control about 1.5% of the EV market. That rate should grow over time as NIO launches new cars and gains more brand relevance. Assuming even just a 2% share by 2030, that implies 150,000 annual deliveries.Further assuming an average sales price point of $50,000, auto gross margins of 20%, and an industry average 10% opex rate, NIO could very realistically hit 60 cents in earnings per share by 2030. Based on market-average 16-times forward earnings multiple and 10% discount rate, that equates to a potential 2019 price target for NIO stock of nearly $4. Bottom Line on Nio StockNIO stock has been a big loser for a long time. But the fundamentals are improving, as are the optics. As such, it feels like the tide is turning. If the tide does turn, the NIO stock price has a somewhat realistic opportunity to double from current levels.As of this writing, Luke Lango was long NIO and TSLA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Using Artificial Intelligence to Outperform the Market * 7 Earnings Reports to Watch Next Week * 6 Retail Stocks Dropping Hard Ahead of Black Friday The post Cautious Optimism Is Finally Warranted for NIO Stock appeared first on InvestorPlace.

  • Benzinga

    Nio CEO Confident Following Rebound In Deliveries: 'Spring For Electric Vehicles Is Near'

    ADR (NYSE: NIO) has been one of the most volatile stocks in 2019 despite the fairly robust performance of the broader market. Nio, invariably referred to as China's Tesla Inc (NASDAQ: TSLA), posted sales in September and October that give Li confidence, especially after  weak performance in July and August. "Spring for electric vehicles is near" as more manufacturers are "educating the market" and delivering vehicles in China, the CEO reportedly said.

  • Benzinga

    13 Stocks With The Highest Average Daily Trading Volume

    One of the most basic but useful metrics a stock trader can watch is daily trading volume. Volume is simply the total number of shares that change hands in a given time period. Essentially, volume is an ...

  • 5 Lottery Stocks With Triple-Digit Upside
    InvestorPlace

    5 Lottery Stocks With Triple-Digit Upside

    In late September, I wrote a gallery on InvestorPlace.com about "lottery stocks", or high-risk, high-reward stocks with huge long-term upside potential.The theme of the gallery was very simple. It was reiterated by our very own CEO, Brian Hunt, in his October piece on lottery stocks. Investors of all shapes and sizes would be wise to invest some money into a basket of these high-risk, high-reward lottery stocks because doing so is all about risking a tiny bit of money for the shot of making a fortune.Sure, the actual lottery is all about the same thing. Buy a scratch ticket for a few bucks. Have a 0.0001% chance of winning the jackpot. Still, no one would consider this a financially wise decision because the odds of winning are so small.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, investing in lottery stocks has much more favorable odds … if you do the leg work of figuring out which lottery stocks have the best chance of turning into multi-baggers in the long run.I've done that work for you. I've identified a handful of lottery stocks that have visible and realistic pathways to 200%-plus upside over the next few years. Are they still risky? Of course. But, the risks here are fully compensated by the possibility of huge long term returns. * 7 Strong Retail Stocks to Buy for the 2019 Holiday Season This column examines five stocks deemed worth of the term "lottery stocks," each with a very realistic chance to triple over the next few years. Lottery Stocks That Could Triple: Plug Power (PLUG)Source: Shutterstock Current Price: $3.50 Potential Future Price: $12One lottery stock that I'm particularly bullish on is hydrogen fuel cell, or HFC, maker Plug Power (NASDAQ:PLUG), because this company has a visible opportunity to grow by leaps and bounds over the next few years if hydrogen become a viable second fiddle to electricity in the alternative fuels market -- and that very well could happen.In the alternative fuels market, there are basically two core and competing technologies: hydrogen and electricity. You've heard all about electricity because, at present, it's much better than hydrogen. That is, it's safer, it's cheaper, and it's supported by better infrastructure.But, hydrogen tech has it's advantages. The two big ones? Shorter recharge times and longer range, meaning that hydrogen cars actually save consumers a ton of time. Some consumers really value time. For those that do, hydrogen could become a more attractive alternative fuel option than electricity, especially as hydrogen safety continues to go up and HFC costs continue to come down (both of which are already happening).Given that, here's the bull thesis on PLUG stock. Plug Power is at the epicenter of the HFC market. It's only an $800 million company. Tesla (NASADQ:TSLA), the world's leading electric car company, has a $65 billion market cap. Thus, even if HFC tech only gets to a tenth the popularity of electric cars at scale, one could still very reasonably argue that Plug Power would warrant a market cap the tenth the size of Tesla, or about $6.5 billion, in the future.Indeed, the numbers do work out like that. Plug Power management expects expansion of HFC adoption in core commercial markets to drive big growth over the next few years. Specifically, management is pointing towards $1 billion in revenue by 2024, with $200 million in EBITDA. Is that possible? Yes. If Plug Power does hit those aggressive targets, the numbers shake out for the company to net about $0.50 in EPS by 2024, and likely somewhere around $0.60 in EPS by 2025.Apply a growth stock average 20-times forward multiple to that $0.60 EPS base in 2025. That implies a 2024 price target of $12, which means that in an "everything goes right" scenario, PLUG stock could rally more than 200% from here over the next few years. Nio (NIO)Source: Sundry Photography / Shutterstock.com Current Price: $1.80 Potential Future Price: $14Often dubbed the "Tesla of China", Chinese luxury electric vehicle maker NIO (NASDAQ:NIO) has a realistic opportunity to turn secular EV and self-driving trends into big growth for the company over the next few years.The story on NIO is pretty straightforward. This company was supposed to be just like Tesla. Start with one premium EV. Sell a bunch of those models. Establish strong brand equity. Leverage that strong brand equity to keep launching new, high-demand EV models. Gradually gain share in the huge Chinese EV market, and leverage scale to produce huge profits.Things haven't played out like they were supposed to. NIO started off with a bang, but over the past few quarters, delivery volumes have come tumbling lower, even amid a new car launch, mostly because: 1) there are simply too many EV companies in China, and 2) the EV market in China slowed considerably in 2019.But, given that this company has crafted a niche for itself in the luxury EV market and that the company just announced a strategic collaboration with Intel's (NASDAQ:INTC) Mobileye unit for the development of self-driving cars, there is a possibility that NIO regains its groove over the next few years. * 7 Subscription Stocks to Buy for Long-Term Gains Let's say they do. The numbers here work out so that China's EV market will likely measure around 7 million to 10 million cars by 2030. NIO could control about 5% of the market, implying around 375,000 EV deliveries in 2030. Assuming a $50,000 ASP and auto average 10% operating margins, we could easily be looking at $1.40 in earnings per share. Based on a market-average 16-times forward multiple and 10% annual discount rate, that implies a 2024 price target for NIO stock of $14. Stage Stores (SSI)Source: WhisperToMe via Wikimedia CommonsCurrent Price: $2.20 Potential Future Price: $9.50Struggling department store operator Stage Stores (NYSE:SSI) ostensibly looks like just another retailer that is being made irrelevant by Amazon (NASDAQ:AMZN). But, underneath the hood, Stages Stores is making some aggressive changes, and if they work, SSI stock could be a multi-bagger in the long run.Long story short, Stage Stores has been killed by online retail competition over the past few years. Comparable sales, revenues, and margins have all dropped. Profits have been wiped out. SSI stock has plummeted, weighed by not just an operational crash but also by a heavily levered balance sheet.But, management is finally doing something to right the ship. Specifically, Stages Stores owns both full-price and off-price stores. The off-price stores are doing much better than the full-price ones. Management is now in the process of converting all of its full-price stores, to off-price stores. The result? Stage Stores could look like a mini TJX (NYSE:TJX) or Ross Stores (NASDAQ:ROST) within a few years.Those off-price retail giants have stable sales bases and margins. If SSI's off-price transition works out, that's exactly what should happen. Sales will stabilize, and margins will peek back into positive territory. Making conservative assumptions on both fronts (sales stabilize around their current $1.5 billion base and operating margins move towards 2.5%), then Stage Stores could realistically net about $0.50 in earnings per share by 2025.Based on an apparel retail sector-average 19-times forward earnings multiple, that implies a 2024 price target for SSI stock of $9.50. Aurora (ACB)Source: Shutterstock Current Price: $2.30 Potential Future Price: $16The cannabis market has been under siege recently, amid crumbling demand trends and widening losses. Canadian cannabis producer Aurora (NYSE:ACB) hasn't been an exception to the trend. But, in the long run, Aurora still looks positioned to be an important player in a huge market, and ACB stock is way undervalued today if that reality comes to fruition.There's a lot going wrong in the cannabis market today. Demand is staying in the black market, because the legal market is having trouble keeping up with black market prices (taxes and fees make the legal market cost base way higher than the black market cost base). Legal producers are having to discount their cannabis to compete. The result? Slowing demand and falling margins, a troublesome combination for what was supposed to be a growth industry.But, the core fundamentals here remain favorable. That is, data shows that not only is cannabis consumption on the up and up, but also that young consumers like to smoke cannabis almost as much as they like to drink alcohol. The implication? Once the legal market figures out logistics and pricing, and out-muscles the black market, the legal cannabis market will be very, very big in a decade -- like $200 billion big.Aurora is currently one of the biggest players in the cannabis world. More competition over the next several years will bring Aurora's market share lower. Ultimately, though, this company should be able to nab 5% share in the $200 billion cannabis market, implying about $10 billion in revenues by 2030. * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio ACB's gross margins are already at 60%. Opex rates should fall toward more normal 30% levels with scale, eventually resulting in 30% operating margins. That's about $3 billion in operating profits. Take out 20% for taxes. Assume 1.5 billion shares out. Use a price-earnings multiple of 16, which is average for the market. All that math gets you to a 2029 price target for ACB stock of over $25. Discounted back by 10% per year, that equates to a 2024 price target of nearly $16. Stitch Fix (SFIX)Source: Sharaf Maksumov / Shutterstock.com Current Price: $20 Potential Future Price: $64Last, but not least, on this list of potential lottery stocks that could triple is personalized styling service Stitch Fix (NASDAQ:SFIX), a company which could change the entire apparel retail model, and in so doing, become a multi-bagger stock over the next few years.Apparel retail today works like this. You go in a store or to a website. You peruse apparel in different categories, adding some to your checkout cart as you go. At the end of the shopping trip, you pay for the stuff you liked and wanted.Seems simple, right? Sure. But, Stitch Fix is in the game of making it even more simple. Imagine if you could just sign up for a service that had a bunch of personalized stylists, and those personalized stylists did all the shopping for you. All you have to do is answer a few questions, and sit back and wait for the clothes to arrive. Better than that, if you don't like what the stylists picked out, you can send it right back.That's the Stitch Fix model. They are taking the thinking out of shopping so it becomes as easy as just answering a few questions. Sure, it's not for everyone. Some people really enjoy going into stores and doing their own shopping. But, this model unequivocally saves time, and it's also professionally curated, so for us design-challenged folks, it yields better results, too.The implication? It seems inevitable that Stitch Fix's reach across the apparel retail landscape will only grow over time. This is a huge, huge market -- $430 billion in the U.S. and United Kingdom alone. Stitch Fix is a small company -- only $1.6 billion in revenue over the last twelve months. Thus, the opportunity for further growth here is tremendous.All things considered, Stitch Fix should grow sales at a 20% pace over the next several years. During that stretch, operating margins should improve thanks to increased scale. Assuming so, then this company could be looking at $3.20 in earnings per share by 2025.Based on a consumer discretionary sector-average 20-times forward earnings multiple, that equates to a 2024 price target for SFIX stock of $64 -- up more than three-fold from today's $20 price tag.As of this writing, Luke Lango was long PLUG, TSLA, INTC, RJX and SFIX. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best High-Growth Stocks to Buy for Young Investors * 7 Stocks to Buy With Great Charts * 7 Troubled Dividend Stocks With Yields Too Good to Be True The post 5 Lottery Stocks With Triple-Digit Upside appeared first on InvestorPlace.

  • Benzinga

    It's Official: Nio Brings Former Auto Analyst Wei Feng On As CFO

    ADR (NYSE: NIO) confirmed reports Sunday that it has Wei Feng is the company's new CFO. Shanghai-based Nio, which makes the ES8 and ES6 electric vehicles, said Wei's appointment is effective Monday. Wei has about 15 years of experience in the automotive industry, with his most recent position being the managing director and head of auto and auto parts research team at the investment banking firm China International Capital Corp, or CICC.

  • GlobeNewswire

    NIO Inc. Appoints New Chief Financial Officer

    NIO Inc. (“NIO” or the “Company”) (NIO), a pioneer in China’s premium electric vehicle market, today announced that Mr. Wei Feng is joining the Company as its new chief financial officer (CFO), effective November 18, 2019.

  • Benzinga

    Bulls And Bears Of The Week: Apple, Disney, Microsoft, Uber And More

    Benzinga has examined the prospects for many investor favorite stocks over the past week. Bullish calls included a couple of software stocks and a mining giant. As usual, Benzinga continues to examine the prospects for many of the stocks most popular with investors.

  • 3 Pros, 3 Cons to Buying Plug Power Stock as World Pivots from Fossil Fuels
    InvestorPlace

    3 Pros, 3 Cons to Buying Plug Power Stock as World Pivots from Fossil Fuels

    In recent years, the investment community has focused significant attention on alternative energy companies for obvious reasons. From both a geopolitical standpoint as well as an environmental one, clean energy solutions simply find wide appeal. However, not every player in this sector is equal, as Plug Power (NASDAQ:PLUG) and PLUG stock demonstrates.Source: Shutterstock In many ways, Plug Power stock is an enigma. It has tremendous potential because the world seeks a pivot away from fossil-fuel energy sources. Moreover, the company has inked some impressive deals with big league organizations. Yet PLUG stock is nothing short of speculative. For a brief moment, shares were once trading in four-digit territory.Now, the tables have clearly turned. Plug Power stock barely avoided sinking deeper into ignominy when it produced its third quarter 2019 earnings report. But again, the results were frustratingly mixed, just like the equity: the hydrogen fuel specialist met analysts' for per-share profitability (a loss of 8 cents) but failed to deliver on the top line (revenue of $56.4 million against an expected $59.2 million).InvestorPlace - Stock Market News, Stock Advice & Trading TipsInterestingly, Tesla (NASDAQ:TSLA) CEO Elon Musk has labeled hydrogen fuel cell vehicles - Plug Power's bread and butter - "mind-bogglingly stupid." And from a traditional angle, I can understand why he said that. If you look at the financial picture for PLUG stock, it's not pretty. Plus, the ugliness leaves shares vulnerable to equity dilution if the company meets unforeseen challenges. * 7 Stocks to Sell Before They Roll Over Yet we all know that Plug Power stocks is super risky. The question is, how viable is the longer-term growth picture? Here are three pros and cons for PLUG that should help you decide: Pro 1: Unlimited Fuel for PLUG StockOne of the major headwinds clouding big oil firms like Exxon Mobil (NYSE:XOM) or Chevron (NYSE:CVX) is that they're levered to finite resources. Hence, over the past several years, we've read stories about peak oil. Even if some of the most macabre doom-and-gloom forecasts don't pan out, the fact is, we have limited oil resources.You absolutely cannot say the same thing about hydrogen: it's the most abundant element not just on earth but in the universe. When we start colonizing Mars and other planets, you'd imagine that we'll use hydrogen-based vehicles.Of course, I'm talking about stuff well into the future. For the here and now, because hydrogen is so abundant, we won't have to deal with OPEC or other unfavorable characters. That's a huge plus for PLUG stock. Pro 2: Hydrogen Refueling is Almost Like Pulling up to the PumpWithout question, the underlying technologies behind electric vehicle companies like Tesla or Nio (NYSE:NIO) are remarkably compelling. But a huge drawback of EVs is that they take too damn long to refuel or more accurately, recharge.Right now, the quickest charging station can charge your EV from empty in about 30 minutes. And we're not talking a full recharge either. Rather, this quickest draw of the electric West will get you to approximately 80% capacity. * 7 Large-Cap Stocks to Give a Wide Berth We live in an on-demand economy where virtually everything operates at break-neck speeds. So how, pray tell, are we going to expect Americans to wait half-an-hour to recharge their EVs?On the other hand, hydrogen vehicles will get you in and out at the refueling station in roughly five minutes. That's almost on par with refueling a big, fossil-fueled SUV, thus not requiring a mass-scale societal shift.Of course, this is a huge boost for Plug Power stock. Pro 3: Big SupportersHydrogen has a lot of detractors -- remember the Hindenburg? Despite valid concerns about hydrogen fuel cells, some huge names in the auto industry have backed this element.Specifically, both Toyota (NYSE:TM) and Honda (NYSE:HMC) have pegged hydrogen as the energy source of the future. And they're not paying mere lip service. Toyota is the largest hydrogen fuel cell car producer for the U.S. market, while Honda isn't too far behind.Plus, both companies have teamed up with a Royal Dutch Shell (NYSE:RDS.A, NYSE:RDS.B) subsidiary to develop hydrogen fueling stations in California. Considering that Plug Power has inked deals with major partners, this massive support is a tailwind for PLUG stock. Con 1: Isn't It Ironic?With hydrogen being the most-abundant element ever, you'd expect that hydrogen fuel provides economic relief for converted drivers. After all, Economics 101 dictates that excess supply should lead to lower demand (prices).But that's not what's happening in this market. Instead, hydrogen refueling costs are expensive, even pricier than gasoline prices on an apples-to-apples comparison. According to CNBC contributor Joe D'Allegro:"The average price for hydrogen fuel in California is about $16/kg -- gasoline is sold by the gallon (volume) and hydrogen by the kilogram (weight). To put that in perspective, 1 gal of gasoline has about the same amount of energy as 1 kg of hydrogen. Most fuel cell electric cars carry about 5 kg to 6 kg of hydrogen but go twice the distance of a modern internal combustion engine car with equivalent gas in the tank, which works out to a gasoline-per-gallon equivalent between $5 and $6."This is where EVs clearly win out. And it's also where standard gasoline-powered vehicles emerge victorious, which is negative for PLUG stock. Con 2: Infrastructure Limits Plug Power StockCalifornia, where you'd expect the alternative fuel to be popular, has only 39 hydrogen refueling stations, with another 25 due to soon appear on the map. That's not nearly enough to satisfy driving demand, especially if hydrogen-powered cars proliferate.But thanks to California green initiatives, the state has a plan to develop 200 hydrogen stations by 2025. While that would be a 413% lift from current numbers, it still wouldn't be nearly enough. * 7 Great High-Yield Stocks With Payouts Over 5% There are over 12,000 gasoline stations in California and that number could easily grow considering the state's population growth. Therefore, 200 hydrogen fueling stations would only cover less than 2% of existing gasoline infrastructure.With such limited coverage, it's hard to imagine hydrogen cars being anything more than niche vehicles for the rich. Con 3: Hydrogen-Powered Cars are ExpensiveIt's not just the refueling costs that are expensive; the cars themselves are available only to the rich. As D'Allegro wrote:The biggest problem: The cars remain expensive. Nexo, for instance, is the most expensive Hyundai on sale in the U.S., with a starting price of $59,345 (starting prices for the brand's comparably-sized Santa Fe start at $24,250). The Toyota Mirai and Honda Clarity fuel cell models have a similar MSRP in the $59,000 range. These car purchases are eligible for government rebates -- in California there is a $5,000 tax rebate available.Among other factors, most folks will likely pay for a high-end, gas-powered luxury car than an essentially experimental hydrogen car. Further, cost accessibility is an issue that could impact the vulnerable PLUG stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio * 5 Streaming Stocks to Buy for Huge Upside Over the Next Decade The post 3 Pros, 3 Cons to Buying Plug Power Stock as World Pivots from Fossil Fuels appeared first on InvestorPlace.

  • Benzinga

    From Sell-Side To Executive Team: Nio Reportedly Taps Auto Analyst As Next CFO

    ADR (NYSE: NIO) announced the sudden departure of then-CFO Louis Hsieh, the struggling Chinese electric vehicle maker has reportedly filled the position. Nio has hired Feng Wei, an auto analyst with investment firm China International Capital Corp., as its next CFO, Bloomberg reported, citing people familiar with the matter. Feng, who also covers Nio, last had a Neutral rating on the stock, the report said.

  • Electric-Car Maker Xpeng Raises $400 Million From Xiaomi, Others
    Bloomberg

    Electric-Car Maker Xpeng Raises $400 Million From Xiaomi, Others

    (Bloomberg) -- Chinese electric-car maker Xpeng Motors Technology Ltd. has raised $400 million from investors including technology company Xiaomi Corp., as it seeks a spot among China’s more serious contenders in the market.Private-equity firms and individual investors including founder He Xiaopeng also took part in the funding round, the company said Wednesday in a statement.The startup said in June it has produced 10,000 units of its G3 sport utility vehicle, putting it in competition with local rivals such as NIO Inc. and global competitors including Tesla Inc. in the world’s biggest EV market.Yet demand in China is sputtering, with EV sales falling for months since the government cut subsidies earlier this year. The slump has raised speculation among investors that only a small fraction of China’s aspiring electric-car makers will survive.Xpeng is working with Xiaomi in developing technologies connecting smartphones with vehicles. Xpeng’s backers also include ecommerce giant Alibaba Group Holding Ltd.The carmaker said it also secured “several billions” of yuan in unsecured credit lines from China Merchants Bank Co., China Citic Bank Corp. and HSBC Holdings Plc.To contact the reporters on this story: Ville Heiskanen in Singapore at vheiskanen@bloomberg.net;Chunying Zhang in Shanghai at czhang714@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Ville Heiskanen, Will DaviesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Benzinga

    Nio Could Be In For More Pain As Industry Association Issues Bleak EV Sales Forecast

    ADR (NYSE: NIO) shares, which crossed over the $2 threshold and hit a high of $2.46 last week on the back of a pact with Intel Corporation's (NASDAQ: INTC) Mobileye unit for driverless consumer cars in China, were losing momentum Monday. Sales of Chinese new energy vehicles, or NEVs, comprising electric vehicles and plug-in hybrid vehicles, declined year-over-year for the fourth consecutive year, according to the CAAM. The association said NEV sales fell 45.6% to 75,000 in October, while production declined 35.4% to 95,000.

  • Benzinga

    Chinese Auto Sales Are Under Pressure

    Sales of automobiles in China declined for the 16th consecutive month in October. The total car sales in the world’s biggest market fell 4% from the same month a year earlier, the China Association of ...

  • Nio Stock: A Real Lift or a Dead Cat Bounce?
    TipRanks

    Nio Stock: A Real Lift or a Dead Cat Bounce?

    Nio (NIO) has received a couple of nice catalysts over the last several days, sending its share price sky high.The first boost came from Nio reporting it has increased October deliveries by 25 percent in comparison to the prior month. The second catalyst was the announcement the company had entered into a partnership with Intel subsidiary Mobileye to help develop autonomous vehicles, with China being the initial market they'll be marketed to.In this article we'll look at whether or not these two positive reports have legs, or they are only a temporary reprieve from its past weak performance.October DeliveriesNio reported October deliveries had jumped to 2,526 vehicles in October, up from 2,019 deliveries in September. The company also pointed out this was significant because October in China includes a seven-day national holiday in the early part of the month.Of the total October deliveries, 2,220 of them were ES6s, and the remaining 306 were ES8s, its premium SUV offering.While the percentages were impressive, it has to be taken into account that the number of vehicles delivered were working from a very small baseline.Although the company needed a positive report, it really isn't something to get too excited about unless it shows it can consistently increase delivery volume on a consistant basis over a prolonged period of time. That has yet to be proven.This isn't bad news for the company, but it shouldn't be considered more than a baby step until it proves this wasn't a one-off performance.MobileyeIn its announced collaboration with Mobileye, Nio Inc. said it would "engineer and manufacture a self driving system designed by Mobileye, building on Mobileye’s level 4 AV kit."Nio's part will be to mass produce the system and work on integrating the system into a variety of vehicle lines of Mobileye. The vehicles will be used in Mobileye's ride-hailing services, as well as vehicles it markets to consumers.China will be the initial targeted market, eventually followed by expansion into other international markets.With these back-to-back announcements, the share price of Nio skyrocketed. The question now is whether these positive catalysts will only have a short-term impact on the company's share price, or it'll drop back down after the market absorbs the implications.In this deal, it's not likely to have much impact on the short-term performance of Nio, but if it's able to survive into 2020, it could start to provide a sustainable and predictable revenue source.Wall Street VerdictWall Street is not convinced that the Chinese electric-vehicle maker's reward is worth all the risk, especially when taking note that TipRanks analytics exhibit NIO as a Hold. Based on five analysts polled in the last three months, four rate a "hold" rating on Nio stock, while one says "sell." The 12-month average price target stands at $2.05, which aligns evenly with where the stock is currently trading. Wall Street needs to see more from NIO before getting more confident on the story. (See Nio stock analysis)ConclusionThe increase in deliveries and deal with Mobileye are important, but I don't see this having a significant impact on the performance of Nio in the near term.For that reason, the issues of its survival remain in play, as it continues to burn cash and concerns over whether or not it'll have any working capital within a few months remain in place.If the company shows it can continue to increase vehicle deliveries as it works on Mobileye's self driving system, it could slowly start to work its way out of extreme trouble. It's still a long shot, but it is more positive for Nio now than it was at the end of October.What this probably does in my view is make it a little more attractive to a potential suitor that is looking to take a position in this space.That said, the last thing a larger company would want is to acquire Nio and then have to write off the acquisition if it continues to struggle to grow.There is not doubt this has and probably will continue to provide a higher bottom and top for Nio in the near term, but it's questionable as to whether it'll be able to continue to hold those higher tops and bottoms, or it slides back into its former weak performance.I think it'll probably do a little better than before the news was announced but the overall macro problems at the company remain in place, and it needs more than these positive but small catalysts to change its future prospects for the better.Nio will probably be a decent stock to trade for a short period of time, but I wouldn't take these two positive catalysts as a reason to take a long-term position in the company. The problems it had before the increase in deliveries and Mobileye deal remain in place. To find better ideas for stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched feature that unites all of TipRanks’ equity insights.

  • Does a 37% Rally Suddenly Make Nio Stock a Buy?
    InvestorPlace

    Does a 37% Rally Suddenly Make Nio Stock a Buy?

    On Tuesday, Nio (NYSE:NIO) stock erupted higher, climbing 37% to $2.34. I have covered Nio stock for a long time, and while shorting NIO at this low price obviously won't be too lucrative, being long the shares just hasn't made sense either.Source: Sundry Photography / Shutterstock.com But is Tuesday's rally enough to change the tune for Nio stock and shift momentum back to the bulls?Unfortunately, there's still quite a bit of overhead resistance that Nio stock has to push through. On top of that, the company's fundamentals haven't really changed. Since the shares' technicals aren't bullish and the company's fundamentals aren't upbeat either, Nio stock is still a tough name to buy at this point. That's especially true now that the shares are 40% more expensive than they were just the other day.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What Caused the Spike?Nio stock price ripped higher after it was reported that NIO is working with Mobileye. Now a part of Intel (NASDAQ:INTC) after being acquired by the chip maker in 2017, Mobileye will work with Nio to build vehicles with autonomous driving features and capabilities.The autonomous driving game is still in its early stages, but many believe that it will be a powerful driver of revenue, efficiency and safety in the future. That's why Nvidia (NASDAQ:NVDA) has put so many resources behind developing its own solutions for autonomous driving. * 3 Positive Market Signals for the Rest of 2019 But why does Nio working with Mobileye suddenly make Nio stock worth roughly 40% more? Are Nio's sales and earnings going to immediately increase? Has its balance sheet been meaningfully improved by the deal?The deal could potentially boost Nio's sales down the road. But at least on the surface, the partnership doesn't seem to be worth a 40% surge in Nio stock price. A Reaction to TeslaNio's deal with Intel seems like a reaction to Tesla's (NASDAQ:TSLA) presence.Tesla's battery factory in Shanghai, China is in the early stages of production. For Nio, a struggling China-based electric car maker, Tesla's entrance isn't exactly good news. Tesla has better financing, more flare and a more dominant position in electric vehicles. Not only that, but its Autopilot feature is one of the most advanced driver assist systems available today.Is Nio's partnership with Mobileye an attempt to fight back against Tesla? Perhaps, although it's likely too little, too late for Nio. At the end of the day, the agreement with Intel doesn't immediately move the needle for NIO, and that's what matters for a sub-$5 stock. Trading Nio Stock Click to EnlargeWhile the one-day gain of Nio stock price was impressive, Nio stock does not have an impressive track record. Even with the 37% gain, the shares were still down a whopping 67% in 2019.Think about that next time you're sitting on a losing position and don't want to cut ties simply because it will mean the paper loss will turn into a realized loss. Seriously. This stock rallied 40% in one day and is still down over 60% in 2019.But how do we trade Nio stock now?Going forward, see if Nio stock price can stay above $1.80. If it can do that, perhaps it can begin to repair some of the damage on its charts. If NIO continues to push higher, see if it can reclaim its 50-day moving average. If the shares climb over $2.60, perhaps they can fill their gap toward $2.75. The Bottom Line on Nio StockThere are so many stocks to buy out there that are better than Nio. To be fair, there are worse ones, too. And while one-day gains in excess of 30% sound appealing, remember that Nio stock price is below $5 for a reason.The Mobileye announcement is good for Nio. But I don't believe it will have an immediate impact on the company's vehicle sales or its revenue. Perhaps it will help NIO burn less cash. Still, Nio stock doesn't seem worth the risk at this moment.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post Does a 37% Rally Suddenly Make Nio Stock a Buy? appeared first on InvestorPlace.