|Bid||122.10 x 900|
|Ask||135.00 x 900|
|Day's Range||129.21 - 130.00|
|52 Week Range||108.01 - 145.41|
|Beta (5Y Monthly)||0.80|
|PE Ratio (TTM)||7.95|
|Forward Dividend & Yield||4.05 (3.16%)|
|Ex-Dividend Date||Mar 30, 2020|
|1y Target Est||156.03|
There seems to be no stopping Nio (NYSE:NIO) stock at the moment. The shares of the electric-vehicle EV maker have increased 230% in 2020. Many are wondering if it can climb further, as the shares trade at an expensive trailing price-sales ratio of 13.Source: Sundry Photography / Shutterstock.com There is no doubt that the stock is an exciting growth play that should be included in every portfolio. Although Tesla (NASDAQ:TSLA) is the top electric-vehicle maker, its position in China is not ironclad. As history shows, the Chinese have a preference for local manufacturers. A strong nationalistic streak will help Nio as it looks to gain a more significant foothold in its country of origin.Nio appears to be doing just that. The Chinese automobile manufacturer reported 3,533 vehicle deliveries in July, representing year-over-year growth of 322.1%. But there are other issues that the company has to deal with, such as its need for cash and its negative margins.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOverall, I would wait for a more attractive opportunity to invest in NIO stock. Although the EV maker's long-term growth outlook remains intact, it's trading at high multiples at the moment. Nio Has an Advantage in ChinaIt may come as a surprise to many, but Apple's (NASDAQ:AAPL) iPhone is not the top smartphone brand in the largest country in the word. Instead, local brands such as Huawei, Vivo, and Oppo dominate. That shows how much the Chinese value local brands.China now accounts for roughly one-quarter of Tesla's revenue. But its good times there may last for only so long, as Nio continues to make inroads in the Chinese market. If deliveries in 2020 are anything to go by, Nio is headed for a strong year, despite the novel coronavirus pandemic. * 7 Travel Stocks to Buy Banking On Pent-Up Demand The Chinese government, the world's largest importer of crude oil, also wants to focus on the environment and move to cleaner energy sources. China has already announced it will continue providing subsidies for new-energy vehicles, since it wants these automobiles to account for one-fifth of its auto sales by 2025. The extension of the subsidies is favorable for Nio. The Risks Facing NIO StockNio's Chinese background may be a sticking point for some investors. The regulatory environment in the U.S. is far more robust than that of China. The recent fraud case involving Luckin Coffee (OTCMKTS:LKNCY) shows that lax regulations can cost investors severely.Tesla, Nio's main competition, also seems to have a better brand than Nio globally. That may be due to Elon Musk and his charismatic personality or it could be because Tesla generally has a better marketing strategy. But the bottom line is that Tesla has a more well-known brand than its competitors.Over time, that could change. But in order to boost its brand image, Nio will have to greatly increase its marketing budget at a time when the company's capital expenditures are high. The Valuation of NIO StockThe big debate in the sector is whether to invest in TSLA stock or NIO stock. Both stocks seem expensive, but Tesla is on another level altogether. Valued at over $300 billion, the company's market cap stands over and above the market caps of Toyota (NYSE:TM) and Honda (NYSE:HMC), which are among the biggest names in the automobile sector.I believe TSLA stock is highly overvalued, while NIO stock has a lot of optimism baked into it. Granted, much of that excitement makes sense, but it is still an expensive stock. The Bottom LineNIO stock is on a bull run, and it's legitimate to question whether it can climb further. I believe Nio is a growth stock, and it has several favorable catalysts that will push the share price up further. Nio is a good long-term investment.However, I think that it would be better to wait for a more attractive entry point before buying the shares.Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio. Faizan does not directly own the securities mentioned above. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Nio Stock Is Pricey, But the Company's Growth Outlook Is Enticing appeared first on InvestorPlace.
As the market valuation of Tesla raced to the moon, its debt rating remained as junk Continue reading...
Over the years, I have consistently pounded the table on groundbreaking technology firms. Collectively, we're entering a period where multiple innovations are converging at once, sparking what I term the "Roaring 2020s." Certainly, electric vehicles represent a vital cog in this gear. However, this does not include bizarre gimmicks like Electrameccanica Vehicles (NASDAQ:SOLO). Thus, I have a simple piece of advice: avoid SOLO stock.Source: Alexandru Nika / Shutterstock.com Of course, I'm not naive to what's going on in our new normal. With many people still sheltering in place, they've got nothing but time on their hands. To get some excitement in their lives, several rookie investors have poured into speculative ventures like Chesapeake Energy (OTCMKTS:CHKAQ) or JCPenney (OTCMKTS:JCPNQ). Given this context, I understand why SOLO stock has attracted eyeballs.To give credit where it's due, Electrameccanica also has an intriguing story. Basically, the company is trying to solve the "last mile" problem for commuters. Most of us use our personal vehicle to drive to work. When we do, we usually drive alone.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut our cars don't care whether we're using them efficiently or not. Thus, when we hit the road, we're always carrying the weight of unused space. Electrameccanica's flagship Solo EV supposedly presents the perfect solution: why not get rid of that space when we commute?In a way, Electrameccanica answers the same question posed to Uber (NYSE:UBER) but in reverse. With an ultra-compact, three-wheeled design, the Solo is a purpose-built EV for maximum commuting efficiency. Under this narrow definition, the platform is a cost-saving, environmentally friendly one, which also explains the bullishness for SOLO stock. * 7 Travel Stocks to Buy Banking On Pent-Up Demand But when you look under the hood, you'll realize that not all is well. SOLO Stock Is Tied to a Solution No One Asked forAlthough the idea of enhancing efficiency is a noble one, the execution is flawed. To be honest, I'm not sure if a market exists for Electrameccanica nor will it ever materialize.As a three-wheeled EV, the platform has the worst of both worlds. Technically, the Solo is a motorcycle but lacks the convenience of one. Because the front of the car has two wheels, it's too wide to sneak through tight spots. As well, it doesn't have the basic functions of a normal car; for example, extra passenger capacity and practical cargo space.Worryingly for SOLO stock, the underlying EV is an "inbetweener" that has partial elements of positive attributes of motorcycles and passenger cars but never satisfyingly fulfilling them. For instance, the Solo is easier to parallel park in spots which would be impossible for a normal-sized car. But how many times do you find yourself in this situation? Likely, you're not going to pay $18,500 for the privilege.Which brings me to another point of why I'm bearish on SOLO stock: who the heck thought it was a good idea to price this EV at over 18 grand? Just pay a little bit more and you're in good shape to buy a new, subcompact car from Toyota (NYSE:TM) or Honda (NYSE:HMC).Admittedly, you're not getting an EV at this price point. However, with the new normal, people just aren't driving that much. As well, combustion-engine vehicles have become very efficient. When the average commute for Americans is only 16 miles one way, the additional burden of buying a new car exclusively for commuting is a bit much.With a normal car, you open its utility to other endeavors, rendering Electrameccanica and by deduction SOLO stock a gimmick. Who Is the Solo's Target Demographic?Speaking of utility, investors should ask who the Solo's target demographic is. With the design and the lack of oomph, it's safe to say that Electrameccanica didn't have men in mind as its core customers.But then, this brings up a dilemma. According to Brad Smith, director of market statistics for Experian, "Women gravitate toward utilitarian-type vehicles." Female drivers have jumped on crossovers and compact SUVs.On the other hand, men prefer flash and dash. Thus, you see performance-centric cars dominate male drivers' wish lists.This again brings up the core problem that will plague SOLO stock. At best, Electrameccanica is delivering half-baked solutions. The Solo is neither fast, nor arguably sexy. It definitely isn't practical. And that's why I say there's no market for this EV.Who'd want to buy it?Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now. As of this writing, Matt did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Electrameccanica Vehicles Is a Silly, Pointless Gimmick appeared first on InvestorPlace.