|Bid||7.40 x 1000|
|Ask||0.00 x 1000|
|Day's Range||7.26 - 7.61|
|52 Week Range||5.35 - 13.80|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Had Tesla (NASDAQ:TSLA) not legitimized mass-market electric vehicles here and in China, Nio (NYSE:NIO) might have never come into existence. But now that it has, the newcomer is in a position to beat Tesla at its own game… in China, and eventually, perhaps in the United States.That may not be a core reason to step into a position in Nio stock, however. Rather, to be bullish about Nio stock, investors have to think that Nio has learned from Tesla CEO Elon Musk's overly aggressive spending, as well as from the U.S. company's marketing mistakes.Nio has been called the Tesla of China, but if Nio stock is worth the risk of buying, it's because it's not quite China's version of Tesla.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Buy These 5 Stocks to Play the Megatrend of the Century Nio Is Off to a Good StartNio was founded in 2014, though it didn't mass-produce its first vehicle until last year. That vehicle is the seven-passenger ES8, which retails (in China) for $67,000.That's too expensive for most of China's consumers. But it's still more accessible for Chinese buyers than Tesla's comparable vehicle. Tesla just lowered the price of its Model 3 sedans in China, but they still start at $64,000. Tesla's more comparable SUV/crossover, the Model X, retails for well over $100,000, and the best-equipped versions cost closer to $200,000.And so far, China's drivers are snapping up all the ES8s that Nio makes. Nio delivered 3,318 of them in December, bringing the 2018 tally to 11,348. The ES8's sales figures are in-line with those of Tesla's earliest vehicles, though Nio brought its second passenger vehicle to the market much faster than Musk did. The ES6 -- a smaller SUV that starts at $52,000 -- debuted in December.The two companies appear to be on parallel paths, and in many regards they are. In some ways, though, investors have to appreciate that NIO doesn't intend to stress out its shareholders as Musk has. Less AggressiveWhile Tesla stock exploded higher in 2013 and again in 2017 on the heels of the company's mainstreaming of EVs, since late 2017 a fiscal reality check has largely kept a lid on TSLA stock.As it turns out, it's neither cheap nor easy to make a whole new kind of automobile, particularly in bulk. Musk referred to his expansion headaches as "production hell." Given Tesla's woes, Nio's chiefs probably aren't even thinking about turning a profit in the near future.Yet, beyond the superficial similarities, there are key differences. Those differences will probably be welcomed by the owners of Nio stockChief among the differences is the method that Nio is using to manufacture its vehicles. Whereas Musk insisted on building Tesla's vehicles from the ground up in-house, despite little manufacturing experience to speak of, NIO has outsourced that job to its Chinese partner, JAC Motors.But that will change in the foreseeable future. NIO is currently building a factory in Shanghai that should begin production in 2020. But beforehand, the brand will have been established and design headaches will have been ironed out by JAC, which is a well-established company.In retrospect, it's arguable that Musk spent as much time fixing manufacturing problems as implementing his vision. Such production problems probably won't weigh on NIO stock as much as they hurt Tesla stock.Nio also doesn't intend to (or need to) perfect battery technologies, since it's going to make battery swapping tantamount to filling up at a gasoline station. Tesla, on the other hand, had to tackle the expensive endeavor of developing batteries.In that same vein, Nio will incur lower relative costs on multiple fronts.One of those fronts is labor; Chinese workers earn relatively less than their western counterparts. Another area where Nio plans to curb costs is its development of self-driving technologies. It's building cars with MobileEye's fourth-generation EyeQ chips, which another company developed over many years and at great cost. The technology isn't at the cutting edge of autonomy, but given the uncertainties of self-driving cars (China's regulators are struggling with the idea just like U.S. regulators are), spending heavily on top-tier self-driving tech -- as Tesla is -- may not yield much of a return on investment.In short, NIO is at least thinking about its bottom line, even if it won't deliver net profits for years. While Musk has admittedly made amazing machines, it's been at a cost that hasn't been entirely justified. The discrepancy makes Nio stock more attractive now than Tesla stock was then. The Bottom Line on Nio StockWhile Nio is in many ways the carefully-managed company that many Tesla shareholders wish Tesla was, there's still no assurance Nio will achieve sustained profits any sooner than Tesla did… if Tesla actually has. UBS analysts Paul Gong and Yizhe Wang recently concluded that the current value of Nio stock already reflects the company's present fiscal situation and plausible opportunities.Handicapping EV stocks is also something of a flying-by-the-seat-of-your-pants exercise, however. Their valuations are largely driven by rhetoric rather than results, and the EV market's backdrop is forever changing. Just like Nio is putting pressure on Tesla in China, newcomer Byton is a budding threat to Nio.If the mere premise and promise of electric vehicles in China made Tesla stock a compelling trade just a couple of years ago, though, then Nio stock has to be at least a slightly better prospect now. And, the more cars NIO makes, the better that prospect becomes. Never even mind the fact that China's leaders would much rather see home-grown EVs on the country's roads.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Every 20-Year-Old Should Buy * 10 Best Dividend Stocks to Buy for the Next 10 Months * 10 Monster Growth Stocks to Buy for 2019 and Beyond Compare Brokers The post If You Liked Tesla Stock Then, You Have to Love Nio Stock Now appeared first on InvestorPlace.
Nio (NYSE:NIO) is one of China's hopeful carmakers of the future. And yes, it's true that it's focused on selling electric vehicles (EVs), so it has gotten the "equivalency treatment" -- i.e., the fill-in-the-blank of China -- that U.S. investors paint many foreign firms with.And yes, like Tesla (NASDAQ:TSLA), Nio's first car is a cutting-edge performance coupe that set the lap record at legendary German race track Nurburgring and the autonomous lap record at Circuit of the Americas in Austin, Texas.But similarities end there.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNio launched its IPO in the U.S. last September but it didn't get much love. The stock slid from its IPO price of $9.90 and has hovered in the $6-$8 range since then. Only now, in 2019 has the stock got some of its pep back, climbing briefly back above $8 with the possibility that it may continue this path.It now has a $7.7 billion market cap, which basically means there were investors, but few were interested in buying in at or above the IPO price. NIO is still losing money and will be for the foreseeable future. But it now has a seven-passenger SUV in its lineup and a five-passenger version is soon to be released. * 10 Best Dividend Stocks to Buy for the Next 10 Months But it's an interesting opportunity in a market that, once unlocked, will have enormous potential. And a homegrown EV carmaker will be given a great deal of favorable attention from the Chinese government, as well as many citizens. NIO Stock's Future in a Dynamic MarketJust as the U.S. has big "Made in the USA" fans, China has the same patriotic feelings about its products and industries. Building products to Western standards for as long as China has means it has the ability to produce high-quality products and now it can sell them to its own growing middle class.One thing to remember is that there are over 300 EV makers in China at this point, and that many of them will not be around long. NIO won't have its own factory up and running until 2020.My point is, this is a very young market that is even more dynamic; things will change rapidly in the coming few years.But one thing that does promise some staying power with NIO is that it has deep-pocketed investors.The main shareholder and founder is William Li, who got his start as founder of Bitauto Holdings (NASDAQ:BITA), an internet marketing, content and transaction company for the Chinese auto market.Obiviously, Li's experience in this sector adds a great deal of weight to Nio's ambitions.The second-largest shareholder is Tencent Holdings (OTCMKTS:TCEHY), the company that owns the wildly popular social media platform WeChat and just launched a music service. Its interest is on artificial intelligence side of things. And it also has a stake in TSLA.And interestingly, the No. 3 investor is U.K. investment management firm Baille Gifford, which is the No. 2 shareholder in TSLA.Given that ownership and their interest in top EV makers on both sides of the Pacific, NIO has a better than average chance to break through, but it's still early and there are plenty of hurdles, as we've seen in the US EV market.Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Fundamentally Sound Dividend Stocks to Buy * 5 Reasons Reeling FAANG Stocks Won't Deliver Big Returns * 3 Reasons Canopy Growth Could Burn You Compare Brokers The post Is Nio -- the Tesla of China -- for You? appeared first on InvestorPlace.
Although many market players root for stocks to go straight up every day, it is refreshing from a trading standpoint to have some periodic bouts of weakness. There was one good intraday bounce so far which has been the pattern lately but what will be key is if intraday lows are breached and the indices do not rally in the last hour. The indices are hitting new intraday lows on headlines that Larry Kudlow is saying that there is a pretty sizable distance to go in the China trade talks.
Warren Buffett versus David Einhorn: Who's Right about Apple?(Continued from Prior Part)Buffett’s investment in AppleIn this series so far, we’ve discussed Warren Buffett’s investment in tech giant Apple (AAPL).In the third quarter of 2018,
Why NIO, China's Tesla, Rose ~24% in JanuaryNIO’s January performance Since NIO (NIO), popularly hailed as China’s Tesla, was listed on the NYSE in September 2018, it has seen wild roller-coaster ride. In October and December 2018, NIO fell
Tesla's Q4 2018 Earnings: What You Need to Know(Continued from Prior Part)Ratings on TeslaAccording to the latest data compiled by Thomson Reuters, 32% of analysts covering Tesla stock (TSLA) gave it a “buy” recommendation. Another 32% of
Tesla's Q4 2018 Earnings: What You Need to Know(Continued from Prior Part)Tesla’s Q4 2018 earnings As discussed in the previous parts of this series, Tesla’s (TSLA) fourth-quarter results impressed investors, but the departure of its CFO, Deepak
Tesla's Q4 2018 Earnings: What You Need to Know(Continued from Prior Part)Gross margin in Q4 2018 In the fourth quarter, Tesla’s consolidated gross profits stood at $1.44 billion, down 5.3% from $1.52 billion in the third quarter of 2018 and up
Tesla's Q4 2018 Earnings: What You Need to Know(Continued from Prior Part)Tesla’s Q4 2018 revenueIn the fourth quarter, Tesla (TSLA) reported GAAP (generally accepted accounting principles) revenue of ~$7.23 billion, which reflected an increase of
BEIJING/SHANGHAI (Reuters) - U.S. electric vehicle maker Tesla Inc said it will start taking orders in China on Friday for a lower-priced version of its Model 3 car, as it seeks to accelerate China sales hit by trade friction between Washington and Beijing. Previously, the starting price for a Model 3 in China was 499,000 yuan, for an all-wheel-drive long range version. Tesla said earlier this year that it plans to start delivering Model 3 cars to customers in China in March.
Tesla's Q4 2018 Earnings: What You Need to KnowTesla’s Q4 2018 earningsTesla (TSLA) released its fourth quarter of 2018 results after the market closed on January 30. The company’s adjusted earnings for the quarter were at $1.93 per share on a
Shares of electric carmaker Tesla (NASDAQ:TSLA) fell on Thursday following mixed quarterly results posted after Wednesday's close. Tesla, often buoyed by revenue growth that isn't as profitable as hoped, repeated that pattern for its fourth fiscal quarter ending in December. Sales of $7.23 billion were better than the $7.08 billion analysts were modeling, while adjusted per-share earnings of $1.93 fell short of the projected figure of $2.20. Yet, it marks Tesla's second consecutive quarterly profit … defying more than a few doubters who felt the spendthrift company led by often brash CEO Elon Musk would never achieve sustained viability. Still, there's still cause for concern. Why? Because this may be as good as it gets for Tesla stock holders. InvestorPlace - Stock Market News, Stock Advice & Trading Tips ### Recapping Tesla's Earnings For the three month stretch ending in December, Tesla's top line grew from $3.29 billion a year earlier to $7.23 billion om Q4. Profits fell short of analyst expectations but were well up from the year-ago loss of $3.04 (due to heavy spending on production capacity for the Model 3). The Model 3, in fact, accounted for the bulk of the previous quarter's business. Tesla announced in early January that of the 90,700 vehicles it had delivered during the fourth quarter, as many as 63,150 were Model 3s. * 10 Super Bowl Deals to Upgrade Your Big Game Experience Musk commented in the official quarterly letter to shareholders: "Model 3's success has carried over to our financial performance in Q3 and Q4 of 2018. Operating income in Q4 remained stable at $414 million despite a sequential decline in revenue from the sale of regulatory credits, higher import duties on components from China, a price reduction for Model S and Model X in China, and the introduction of a lower-priced mid-range version of Model 3." ### Drilling Down Into Tesla's Numbers Although a success by most fiscal measures, current and would-be owners of Tesla stock have good reason to be concerned. "This is a strong indication that demand in the U.S. for both the mid-range and long-range Model 3 versions has largely been exhausted, and the company is still working through the estimated ~6.8k of unsold Model 3 inventory," analysts from Cowen commented in response to clues that the company is only manufacturing cars for China and Europe at this time. Other anecdotal evidence suggests the same. Even as it's planning to build enough capacity in China to manufacture at a pace of 500,000 vehicles by the end of the year, it's laying off U.S. workers. In mid-January the company announced it would be reducing its headcount by 7%, mostly as a means of driving down the average cost to make the Model 3 in the wake of an end to the federal government's $7500 EV subsidy that was cut in half as of January 1st, and will end altogether later this year. "We have to be relentless about costs in order to make affordable cars and not go bankrupt," Musk said during the call. Even then though, it may not be enough to log actual fiscal progress. "Things really aren't going to get any better for Tesla in the U.S. than they did at the end of 2018," commented Edmunds' executive director of industry analysis Jessica Caldwell. She added: "Turning a profit, creatively addressing production challenges and getting the Model 3 to the masses were huge milestones, but keeping up this momentum is going to be virtually impossible." Meanwhile, EV competition within the U.S. is finally becoming palpable. Sales of the Prius Prime from Toyota Motor (NYSE:TM) grew slowly but steadily over the course of last year, as did BMW. Hyundai, Kia, Audi and Jaguar all have EV debuts planned for the United States this year, falling across the price spectrum; Ford (NYSE:F) is moving ahead with an $11 billion investment that will bring 40 electrified vehicles to the market by 2022. Things may not be any easier overseas either. New rival Nio (NYSE:NIO) is starting to turn heads in China, prompting UBS analyst Paul Gong to note this week, "We still think NIO is well positioned in China's EV megatrend from a top-down view." And, Nio isn't the only electric vehicle maker taking aim at China. ### Looking Ahead for Tesla Stock For the year now underway, Musk believes the company will produce between 360,000 and 400,000 cars. Unofficially, he suggested Tesla might be able to produce more. As of the most recent look, analysts are calling for a full-year profit of $6.16 per share of Tesla stock on revenue of $28.7 billion. The company lost $1.33 per share last year on sales of $17.6 billion last year, though it swung to a profit mid-year. Scaling up production should help drive the production cost of the Model 3 down from its current figure of $44,000 -- at the low end -- and help maintain and even widen profit margins. * 7 Sector ETFs to Buy for 2019 and Beyond Conversely, we're talking about a person who has often overestimated his company's capabilities while underestimating the costs, and time, needed to reach public goals. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Machine-Learning Stocks to Buy for a Smarter Portfolio * 10 Stocks to Sell in February * 10 Triple-A Stocks to Buy in February Compare Brokers The post Is This as Good as It Gets for Tesla Stock Holders? appeared first on InvestorPlace.
China’s NIO Rallies on Q4 Earnings Expectations, Bond NewsNIOToday, Chinese electric company NIO (NIO) was trading positively for a sixth consecutive session. As of 10:23 AM Eastern Time, its stock had risen 4.8% since yesterday. Meanwhile, US
Is China Trying to Steal Apple’s Autonomous Car Secrets?China’s attempt failedAccording to NBC, the FBI has arrested a Chinese national for allegedly “attempting to steal trade secrets” from Apple (AAPL). Jizhong Chen, an Apple employee,
Nio Inc - ADR (NYSE: NIO ) shares have risen 20 percent year to date, but one analyst thinks its momentum has peaked. The Rating UBS analysts Paul Gong and Yizhe Wang maintained a Neutral rating on Nio ...
Why Tesla Fell ~5% despite Q4 Revenue BeatTesla’s Q4 earnings On January 30 after the market closed, Tesla (TSLA) reported its fourth-quarter results. The company’s adjusted net earnings for the quarter were $1.93 per share on a non-GAAP
Electric carmaker NIO Inc, one of the main rivals to Tesla in China, raised $650 million in a five-year convertible bond on Thursday, aiming to use the proceeds to fund expansion. The Shanghai-based carmaker's move to raise capital via an equity-linked bond - only four months after it listed in New York - mirrors that of China's Netflix-like video platform iQiyi, which sold a $750 million convertible bond in November after going public last year, highlighting the growing appeal of convertibles for high-growth companies in need of cash. Convertible bonds are a cheaper funding avenue due to their lower coupons in exchange for giving the bondholder the option of converting the debt into company shares at a set price in future.
NIO Is Beating Tesla on Tesla’s Earnings DayNIO Chinese electric car company NIO (NIO)—popularly referred to as China’s Tesla—made an important announcement today. The company announced its plan to raise funds through a $650 million bond
Nio (NYSE:NIO), a leading Chinese electric-vehicle maker, went public in September. The shares quickly spiked from $6.26 to $13.80. But the NIO stock price move proved to be temporary. Currently, it is back near it is initial offering price. With the harsh correction last year, many IPOs have gotten hit hard, but Nio stock had some other issues as well. Let's face it, Chinese tech stocks have been out of favor because of President Trump's tough talk on trade. The result is that major operators like JD.com (NASDAQ:JD) and Alibaba (NYSE:BABA) have have seen steep drops in their stock prices. But for Nio stock, there are also nagging concerns about competition. Consider that home-grown companies like BYD (OTCMKTS:BYDDF) and Geely Automobile Holdings (OTCMKTS:GELYF) have been pouring resources into the EV category. And of course, Tesla (NASDAQ:TSLA) is another formidable rival. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 5 Top Consumer Stocks for 2019 -- According to Wells Fargo So all in all, Nio stock is quite risky, and it seems like a good bet that the volatility will continue. Yet despite this, the company has the opportunity to become a large company in China, which should represent a nice opportunity for investors -- at least for those who can stomach the twists and turns! Here's a look at some of the positives for NIO: ### Nio Stock Advantage: Innovation Nio is a relatively young company, having been founded in 2014. Yet it has made tremendous progress. In 2017, Nio launched the ES8, a high-performance electric SUV. A 7-seater with an aluminum alloy body, it can go zero to 100km per hour in 4.4 seconds. The driving range is also 335km. Then in late 2018, Nio came out with the ES6. It has dual motors, a state-of-the-art braking system and acceleration to 100 km/h in 4.7 seconds. As for the structure of the vehicle, it includes aircraft-grade 7 Series aluminum alloy and carbon fiber. The combination allows for more strength but with less weight. It's also important to note that Nio has been pushing innovation with its AI capabilities. For example, it has developed a speech interactive system, Level-2 autonomous driving and the ability to upgrade the systems via FOTA (firmware-over-the-air). ### Nio Stock Advantage: Execution Over the years, many car startups have failed. One of the main reasons is the challenge of manufacturing. Even a few mistakes and miscues can lead to huge losses. But as for NIO, the company has proven to be quite adept at scaling its operations. It probably helps that it has outsourced production to a Chinese manufacturer (although, NIO will eventually build its own plants). Last year, the company delivered 11,348 ES8s, which exceeded its own forecast. There were also 3,318 deliveries in December alone. For the most part, NIO is showing strong traction. According to NIO founder and CEO William Li: "We will continue to focus on market penetration by delivering high-quality products and holistic services to our users and to improve the system efficiency of our development and operations." ### Nio Stock Advantage: Secular Trends It's true that the slowing Chinese economy will probably be a headwind for Nio. But the long-term prospects for the auto market do look bright. This is especially the case for the premium segment. Based on research from Frost & Sullivan, the compound annual growth rate is projected at 12.4% from 2017 to 2022. And yes, China has the largest market for EVs. Currently, the market share is about 4% of overall auto sales. But the Chinese government has an ambitious plan to take this to about 20% by 2025. * 10 Stocks to Sell in February In other words, NIO is at the sweet spot of strategic market opportunity and so long as the company continues to execute, it is poised for durable growth. Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy for the Rest of the Year * 10 Best Consumer Stocks to Buy in 2019 * 10 Triple-A Stocks to Buy in February Compare Brokers The post 3 Reasons To Be Cautiously Bullish on NIO Stock appeared first on InvestorPlace.
Why NIO Surged More than 4% TodayNIO stockYesterday, Chinese electric car company NIO (NIO) announced a $650 million proposed offering of convertible senior notes due 2024. This announcement implies that the company plans to raise funds with a
NIO Inc. expects to price a $650 million sale of five-year convertible bonds Wednesday after the close, according to terms obtained by Bloomberg. Tesla will only be able to exchange the note for a mix of cash and equity if a weighted 20-day average of its share price jumps about 21 percent from where the stock closed earlier this week. The debt payment will be the largest in the company’s history and may take a big bite out of Tesla’s cash just as Chief Executive Officer Elon Musk is warning of a “very difficult” road ahead.
Could Tesla's Q4 Earnings Help Its Stock Turn Positive?(Continued from Prior Part)Existing trend in Tesla’s revenueIn the third quarter, Tesla (TSLA) reported total revenue of ~$6.8 billion, which reflected an extraordinary increase of ~129% YoY
Electric carmaker NIO Inc, among rivals to Tesla in China, launched a $650 million five-year convertible bond on Wednesday, aiming to use the proceeds to fund expansion. The Shanghai-based carmaker's move to raise capital via an equity-linked bond, only four months after it listed in New York, mirrors that of China's Netflix-like video platform iQiyi, which sold a $750 million convertible bond in November after going public last year, highlighting the growing appeal of convertibles for high-growth companies in need of cash. Convertible bonds are a cheaper funding avenue due to their lower coupons in exchange for giving the bondholder the option of converting the debt into company shares at a set price in future.