3.9200 -0.01 (-0.25%)
After hours: 7:39PM EDT
|Bid||3.9100 x 36100|
|Ask||3.9300 x 27000|
|Day's Range||3.8300 - 4.0300|
|52 Week Range||3.8300 - 13.8000|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 28, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.64|
As far as newly minted stocks go, China's electric car maker Nio (NYSE:NIO) is off to a miserable start. Nio stock, currently trading near $4.00, is now down more than 30% from its September IPO price. Perhaps the startup isn't the next Tesla (NASDAQ:TSLA) after all.Source: Shutterstock Or maybe it is -- and investors only now remember one doesn't simply turn a multi-billion dollar enterprise into a profitable success overnight.That is actually the case here, to be clear. As we've seen far too often within just the past several months, investors are willing to dive head-first into a euphoric initial public offering based on a story, ignoring the fact that it's a sales pitch. Only afterwards do those pesky fundamentals start to matter, deflating puffed-up public offerings. Nio is the real deal, though. Even analysts expect big things soon.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe period between the public offering and validation, however, could be a rough one. Been There, Done ThatMore than a few recent public offerings have turned out punitive for early believers.GoPro (NASDAQ:GPRO), for instance, now trades 70% lower than its 2014 IPO price. As it turns out, nobody disputes the company makes the world's best action cameras. It just so happens that most consumers don't care to own one.Snap (NYSE:SNAP) is presently valued about one-third less than its public-offering price (and 60% less than its post-IPO high) not because it's a poor social networking platform, but simply because consumers don't need another one other than Facebook. * 10 Small-Cap Stocks That Look Like Bargains Demand or marketability aren't the problem here, however. Electric carmaker Nio is, more than anything else, a name that went public too soon.Founded in 2014 and initially owned by Tencent Holdings (OTCMKTS:TCEHY), Hillhouse Capital and founder and CEO Bin Li just to name a few, the company was largely designed to recreate what Tesla had done to date -- but do it better, and do it in China. While at the time of its September IPO, it had only made a few hundred vehicles, by the end of last year the company made almost 13,000 of its one-and-only ES8. The company clearly did something productive with the $1 billion it raised in that initial round of fund-raising.Nio and the early buyers of Nio stock still learned a quick lesson the hard way, however. That is, its vehicles may be just as marketable as Tesla's, and nobody doubts the company can scale up (existing automaker JAC, in fact, has agreed to manufacture all the Nio-branded EVs the company wants), but Tesla had something back in 2010 that Nio didn't have last year -- something new (at the time) to tout that made a lot of sense (electric vehicles), addressing a market that nobody else was competing in (at the time), and making a pitch nobody else could make at the time.What Nio should have done is demonstrate a clear path to profitability first, and then asked for more money, positioning itself as the un-Tesla. With nothing new or novel to excite them, investors quickly lost interest.Welcome to the game. Looking Ahead for Nio StockNio may still lack the scale Tesla has at this time, but Nio is being built from the ground up to become and remain profitable. Indeed, it's being careful almost to fault. It's still unclear that's the case for Tesla, which would be a great talking point that so far's been underutilized.And for what it's worth, given China's aim of becoming the world leader in electric vehicles, it would be naive to think Nio isn't going to get all the help it needs as well to become a global alternative to Tesla… here, there, and everywhere else. Rival BYD, which is technically the world's biggest EV maker, certainly gets such support.It's just not going to all fall in place tomorrow.It may start to happen in earnest next year, though, and even more so the year after that.Analysts -- analysts in the U.S. -- forecast a top line of $720 million this year, which will grow to $2.2 billion next year, and continue to grow at this clip into 2021. By 2022, Nio should be in the black. Click to EnlargeThey're just guesses, to be fair, but they're guesses from professionals that get paid to keep their finger on the pulse of their respective markets and look past the near-term noise. As a group, they're usually in the ballpark. Bottom Line on NIOThe trick, as previously noted, is getting through the volatile period between now and then.Don't sweat it if you're kicking the proverbial tires and struggling to find anything to get excited about. The chart's current action isn't a reflection of the company, nor is the rhetoric surrounding it, but it's rough all the same. There's still a myriad of the usual post-IPO kinks to work out. Fair or not, traders are still in control of Nio stock, and without any clear-cut bullish history to tout -- the result of going public a tad too early -- there simply aren't enough fans and followers on the same page to change the current direction of the Nio stock price.This is just part of that clumsy transition from being a new stock to an established company. Not unlike one's teenage years, they're going to be awkward. * 7 Safe Stocks to Buy for Anxious Investors Give it time, though. It'll turn out fine. Remember, Facebook (NASDAQ:FB) was a train wreck coming out of its 2012 IPO, getting more than chopped in half within a few months. Five years later, it's up nearly 500% from its public-offering value.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post If Nio Stock Has Disappointed You, Read This appeared first on InvestorPlace.
Weeks earlier, a video on Chinese social media platforms showed a Tesla bursting into flames in a Shanghai garage. “Battery combustion is a very serious incident for consumers, and it could lead to consumer aversion to electric vehicles,” Automotive Energy Supply Corp., whose batteries power about 430,000 Nissan Motor Co. vehicles, said in an email.
China-based electric-vehicle maker Nio (NYSE:NIO) continues to suffer. A rally that briefly took Nio stock above $10 per share in March came to a screeching halt following earnings.Source: Shutterstock Now, on top of increased competition and mounting losses, worries about its status in the U.S. market following tariffs have added to the uncertainty. The recent lows could set up a short-term trade in NIO. However, geopolitical risks will likely make it difficult to sustain a rally regardless of what happens with tariffs. The Pain Intensifies for Nio StockHeightened tensions in the U.S.-China trade war present new challenges for this so-called Tesla (NASDAQ:TSLA) of China. The dispute continues the massive slide Nio stock saw in March following its quarterly report. As a result, NIO shares fallen below $4.40 a pop, setting new 52-week lows.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Trade War Stocks With a Lot of Risk Many factors could explain this slide. Our own Bret Kenwell mentioned the "Elon Musk factor" is missing from Nio. The force of Jack Ma's personality turned Alibaba (NYSE:BABA) into a $440 billion company. ASuch an advantage might help Nio stock, currently valued at about $4.55 billion. Financials, Geopolitics Hamper NIOHowever, I think other factors have weighed on the equity. At time of writing, Wall Street expects the company to lose $6.08 per share this year. That estimate came before the latest tariffs took effect. For this reason, investors should probably expect these projections to continue falling.Granted, prospective buyers in hot tech companies do not necessarily care about years of projected losses. However, most market participants know that American investors cannot directly own Chinese stock. Consequently, the Cayman Islands-based holding companies which represent these Chinese firms tend not to bring these elevated multiples.The stock of Alibaba has always traded at a discount to Amazon (NASDAQ:AMZN). Likewise, Baidu (NASDAQ:BIDU) has not seen multiples as high as those achieved by Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG). With larger firms trading at discounts to U.S.-based peers, traders should not expect NIO to ever match Tesla's multiples. Nio Stock Is a Trade, Not a BuyMoreover, recent history has shown trade wars tend to hurt Chinese stocks more than they do American equities. This also holds true for NIO when compared to TSLA. Both companies released disappointing numbers. However, Tesla has lost just over 6% of its value since its previous earnings report less than three weeks ago. On the other hand, Nio stock lost just over 47% of its value three weeks after its last report. Thanks to new tariffs, it has hemorrhaged more than 57% since it announced earnings.With this sharp decline, my InvestorPlace colleague Tom Taulli says that Nio stock could make a good trade. Given the massive drop over the last two and one-half months, I can see the stock making a partial comeback. The lows will probably attract bottom-fishers. That move could even accelerate when NIO releases its next earnings report on June 4 after the bell.However, most investors lack the insights and instincts to play such moves. For those who would rather invest than trade, I see no reason for owning NIO stock here and now. Final Thoughts on Nio StockNo matter what happens with the U.S.-China trade dispute, geopolitical risks and competitive factors will reduce Nio stock to little more than a trade. Investors slammed NIO after its earnings report in early March. Since then, it has continued to slide. This decline picked up some speed with the latest rounds of import duties that the U.S. and China have imposed on one another.Under these conditions, NIO offers little more than the potential for a dead-cat bounce at its current levels. Whether investors want a stake in China or an electric-car play, they will probably earn higher returns in other equities.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 * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Trade War Stocks With a Lot of Risk * 7 Bond ETFs to Buy * 10 Stocks That Could Squeeze Short Sellers, Including CGC Compare Brokers The post Nio Stock Is Only a Trade for Right Now appeared first on InvestorPlace.
A little over two months ago, I warned about the hype surrounding Nio (NYSE:NIO) stock. Nio's CEO, William Li, made an impressive appearance on 60 Minutes to share the electric vehicle maker's story with the world. NIO stock, predictably, surged as people learned about China's potential Tesla (NASDAQ:TSLA) killer.Source: Shutterstock Unfortunately, investors got a little ahead of themselves. Nio is still just getting off the ground. The company briefly hit a $10 billion market cap following the 60 Minutes appearance. That was a rather ambitious valuation for a company that sold fewer than $1 billion in vehicles last year.However, with NIO stock now down 50% since the beginning of March, is it finally time to buy?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nio's Market Is Highly CompetitiveFrom the amount of attention Nio has generated, you might think it is the big dog in the Chinese electric vehicle market. In fact, however, the company is still a tiny player, at least for the time being. You can see this by looking at the top 20 vehicle models sold in China recently -- NIO doesn't have a single one among the best-sellers.For what it's worth, Tesla isn't in the top 20 either. Instead, it's less famed companies like BYD and BAIC leading the way. NIO's prospectus noted that there are more than a dozen competitors already active in the marketplace. * 10 Retirement Stocks That Won't Wilt in a Bear Market This raises an important question. There are obviously huge tailwinds behind the EV market, particularly in China. Given that country's issues with pollution, electric vehicles are taking share rapidly compared to other emerging markets. But will Nio be able to capitalize on this opportunity? Huge Burn Rate for NIO StockAnyone considering an investment in NIO stock must think about the company's cash position. Nio managed to lose more than $1.4 billion in 2018. Impressively, this figure almost doubled in 2018 even as Nio started to make substantial revenues. Adjusting for various items, Nio blew through $1.15 billion in cash last year, and that doesn't even include capital expenditures. Rather incredibly, over the past four years, Nio has lost $5 billion.Coming into 2019, Nio had more than $1 billion in cash, and they brought in another $750 million in a debt offering earlier this year. Still, with Nio losing more than a billion dollars annually, they'll likely run out of cash by the middle of next year in the absence of another capital raise. Tencent's RoleOne interesting factor for Nio is that Tencent (OTCMKTS:TCEHY) is a major owner. Tencent, in fact, has nearly 20% of NIO's outstanding stock. This represents a major sign of credibility for Nio, as Tencent is one of China's most respected tech companies.On the other hand, Tencent's holding amounts to less than 1% of its market cap in value. While Tencent indeed owns a ton of NIO stock, it's still of only modest significance to Tencent's overall corporate outlook. Given Nio's likely need to raise (a lot) more money in coming years, it will be interesting to see if Tencent or other affiliated parties will be willing to keep funding Nio.Without a major backer filling that need, it's hard to see how Nio will be able to keep raising money without massively diluting shareholders.Ideally, Nio should have sold a lot of stock when shares traded up at $10. Here under $5, it's a lot harder to raise the hundreds of millions of dollars per quarter that Nio will need to keep scaling up its business. Few Hard AssetsThese mind-blowing losses get even stranger when considering that Nio doesn't manufacture their own vehicles. Instead, they outsource that to a state-owned player, JAC. Nio pays JAC a fixed fee rate per vehicle that they assemble for Nio. This unusual set-up seemingly takes away much of the gross margin upside for Nio as they hopefully sell more cars going forward.Nio wants to be a lifestyle brand. There's good economic incentive to focus on that while leaving the nitty gritty details, such as manufacturing, to others. Ultimately though, if you are going to blow through billions of dollars, you'd expect to get a little more in return. Right now, NIO stock is backed by very little to support the share price aside from the brand.As such, you have to have a great deal of faith in CEO William Li's vision for the company. Given the company's worsening financial position, the market could put that faith to the test rather soon. NIO Stock VerdictNormally, as a stock declines in value, it becomes a more attractive purchase. This may be a rare exception to the rule. Nio's share price represents the market's confidence -- or lack thereof -- in Nio's prospects. If NIO stock continues to tank, it could become difficult for the company to raise any more funds at all.While it's attractive to think about NIO stock as the "Tesla of China," that may be an ambitious comparison at this point. For one thing, Nio has minimal investments in battery charging/swapping. Unlike Tesla, it relies on public infrastructure for this service. Given that Nio has no edge here or in manufacturing, you have to wonder what will make Nio stand out in a crowded market.The company is making a strategic play to become a luxury brand, but given Nio's huge cash burn and cratering stock price, they may run out of time before reaching profitability. Even under $5, you should only look into NIO stock if you have substantial risk tolerance and go into it knowing that you may lose most or all of your investment.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post Even Under $5, Nio Stock Is Still Highly Risky appeared first on InvestorPlace.
Investors may be tempted to think that after a precipitous decline from north of $10 per share to the $4 range, Nio (NYSE:NIO) stock looks cheap. To those who find this to be a buying opportunity, I have just two words: caveat emptor.Source: Shutterstock There are just too many ways for NIO stock to keep sliding south. Recently announced cuts in EV car subsidies will weigh heavily on already-pressured revenues. Even without the negative effect of reduced subsidies, Nio managed to practically double its net loss year-over-year. Imagine what that number could look like after these deep cuts (over 50%) for their vehicles.Their cash burn since IPO has been prodigious. Some estimates come in at around a billion dollars a year. In an extremely competitive market and a capital intensive sector, that's not a great combination.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThere is also country risk at play, with China in the throes of the ongoing trade war. With an increasingly challenging macro backdrop and ugly financials, additional capital raises are no guarantee either. * 7 Dangerous Dividend Stocks to Stay Far Away From I don't know that Nio stock goes to zero, but let's just say if it's trading over the counter by year-end, I wouldn't be surprised. Structural Issues at Play in Nio StockNio claims that it is a pioneer in China's premium EV market. The company designs, manufactures, and sells premium electric vehicles. While this flash-to-bang approach may seem integrated in a cost-effective stance, think again.What it really means it that Nio appears to be an OEM in the auto sector. In reality, it's a confusing mish-mash of a business model.The company outsources certain parts of the business, like manufacturing, but they simultaneously engage in capital-intensive aspects of the supply chain like buying raw materials. The manufacturer is none other than JAC Motors, a state-owned enterprise contracted to make their vehicles.So Nio stock investors in effect own a company that bears the burden of all the big fixed costs and then has its upside capped because there aren't any efficiencies to be gained when you pay a manufacturer a fixed rate.No efficiencies. No moat. No upside. Bleak Outlook for Nio StockNormally the business outlook is where companies try to say, "maybe we haven't met expectations, but the future will be better." With Nio stock, based on the outlook given by management, it would be foolish for anyone to think that the future is anything close to rosy.Deliveries of the model ES8 in the first quarter will mark "a decrease of approximately 56.1 [%] to 52.4 [%]" from the fourth quarter of 2018. This will bring total revenues down somewhere between 59.5% and 55.9%. What is that in dollar terms? Some $202 million to $220 million. There is no silver lining here. * 7 Cloud Stocks to Buy on Overcast Days Even if this is just a preliminary view on the business situation and subject to change, it's clear that the business and the company are struggling mightily without a clear turnaround.The $4.67 current share price doesn't reflect a future in which deliveries and revenues continue to slide. Hence the danger in thinking that the stock will recover. While it's similarly dangerous to try to pinpoint an exact number that is a fair price for Nio stock, the secular decline and multiple headwinds leave plenty of downside from current levels. There are simply too many ways to lose.As of this writing, Luce Emerson did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy as the Trade War Reignites * 10 Stocks That Could Squeeze Short Sellers, Including CGC * 5 Tech Stocks Getting Crushed Compare Brokers The post Even After Nio Stock Price Halved, It's Still Not Cheap Enough To Buy Now appeared first on InvestorPlace.
SHANGHAI, China, May 15, 2019 -- NIO Inc. (“NIO” or the “Company”) (NYSE: NIO), a pioneer in China’s premium electric vehicle market, today announced that it will report its.
Owning Nio (NYSE:NIO) stock has not been easy on investors. Getting into NIO is a speculative, challenging thesis. But as they say, no guts no glory -- what is hard now may become great reward later.Source: Shutterstock Fundamentally this is a startup company so for now value is not its forte. It sell at 6.6 times sales which is three times more expensive than Tesla (NASDAQ:TSLA).In March, NIO stock collapsed soon after it appeared in a special report on 60 Minutes. That sparked an influx of Main Street investors who piled into the stock only to set it up for the perfect failure that followed. So in early April, I wrote about the opportunity to trade it but only if it took out $5.75 per share, which it never did. So is it now the better time trade it it. Yes, but the answer is more complicated than that.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe TV show caused the stock to spike in March to $10, only to deflate and fall back to the breakout level and below. So NIO now sits 55% lower than in the glow of the 60 Minute exuberance and more than 70% below its all-time highs.Clearly this is a broken stock for now. But the verdict about the company also being broken won't come for long while. * 6 Trade War Stocks With a Lot of Risk So investing in it cannot be time sensitive -- the success of it will need time to unfold. Electric vehicles are gaining momentum but are still far from ubiquity and are way behind the internal combustion engines. This is a complicated process, as it requires establishing the support infrastructure even with the great headway there so far.Tesla did most of the heavy lifting so that Companies like NIO and even the giant manufacturers like General Motors (NYSE:GM), Ford (NYSE:F) and even Volkswagen can simply walk through the door that Elon opened. Be Patient in NIO StockPatience is a virtue for Nio investors and they probably are shocked to see new all time lows with it trading below its initial day of public life. But that is the price we pay when we bet on speculation. I don't mean that it's punishment, these are the ups and downs that go hand in hand with betting on the next new thing: e-cars.Last year, NIO probably stole bids from TSLA when headlines broke out about the Saudi Arabia Fund being interested in NIO. This was the direct result of the infamous Elon Musk tweet of funding secured.Clearly Nio stock had its moments, as it came out of the gate like a race horse. But it quickly faded, and within a month it had broken below $6 per share. It did put in great efforts to regain momentum, but the breakout from $8 per share failed in December. This perhaps was bad timing, as the whole stock market was in a sharp correction at the time.Nevertheless, NIO fell back into prior support. The TV bit gave it another shot in the arm to try for the breakout, and this one went farther. Unfortunately for the bulls, investors hated the March earnings report. The stock fell off a cliff, and here it is sitting on new all time lows.Technically, there is little to discern from the chart with regards to support since this is literally off the charts. But going long here can be justified for two groups.First, investors who believe in the global adoption of the e-car movement. They buy NIO here and assume that it will be one of the winners for the very long term. Or second, traders who are looking to profit shorter term from a miraculous bounce to prior levels. These tactical trades are tricky since there are few downside clues. They can easily turn a trade into an investment without proper management.Assuming the stock will start rising again, there will be resistance at $4.40, $4.55, $4.70. There are many other resistance line above those but it's only fair to let the bulls prove themselves capable of recovering the $5 line first before looking at higher levels for now.In summary, Nio has the opportunity to be a winner of the electric car movement for the long term. But this thesis will require patience and intestinal fortitude to see red before green -- pun intended. As for the tactical trade, there are better tickers for that.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 6 Trade War Stocks With a Lot of Risk * 7 Bond ETFs to Buy * 10 Stocks That Could Squeeze Short Sellers, Including CGC Compare Brokers The post Nio Stock Below $5 Is a Long-Term Opportunity appeared first on InvestorPlace.
The Tesla Model S had been been parked in San Po Kong Plaza for about half an hour on May 12 before the battery started emit to smoke and flames appeared, according to the report. Hong Kong’s Fire Services Department is investigating the May 12 fire, a representative said, declining to identify the make of the car.
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Nio Inc. (“NIO” or the “Company”) (NYSE: NIO) securities issued in connection with the Company’s September 2018 initial public offering (“IPO” or the “Offering”). Investors suffering losses on their NIO investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org. In September 2018, the Company completed its initial public offering (“IPO”), selling 183 million American Depositary Shares (“ADSs” or “shares”) at a price of $6.26 per share.
NEW YORK, May 13, 2019 -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against the following.
The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of NIO Inc. (“NIO” or “the Company”) (NYSE: NIO) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors.
NEW YORK, May 13, 2019 -- The Klein Law Firm announces that class action complaints have been filed on behalf of shareholders of the following companies. If you suffered a loss.
Bragar Eagel & Squire, P.C. announces that class action lawsuits have been filed in the U.S. District Courts for the Northern District of California and the Eastern District of New York on behalf of all persons or entities who purchased or otherwise acquired NIO Inc. (NIO) securities between September 12, 2018 and March 5, 2019 (the “Class Period”). Investors have until May 13, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
NEW YORK, May 12, 2019 -- Faruqi & Faruqi, LLP, a leading national securities law firm, encourages investors in the following companies to contact the firm: Company:.
Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the United States District Court for the Eastern District of New York, captioned Tarapara v. NIO inc. et al., (Case No. 1:19-cv-02777), on behalf of persons and entities that purchased or otherwise acquired Nio Inc. (NYSE: NIO) (“NIO” or the “Company”) securities pursuant and/or traceable to the Company’s false and/or misleading registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s September 2018 initial public offering (“IPO” or the “Offering”). Plaintiff pursues claims under Sections 11 and 15 of the Securities Exchange Act of 1934 (the “Exchange Act”).
NEW YORK, NY / ACCESSWIRE / May 10, 2019 / The Law Offices of Vincent Wong announce that class actions have commenced on behalf of shareholders of the following companies. If you suffered a loss you have ...
NEW YORK, May 10, 2019 -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against the following.
NEW YORK, NY / ACCESSWIRE / May 10, 2019 / The Klein Law Firm announces that class action complaints have been filed on behalf of shareholders of the following companies. If you suffered a loss you have ...
Ever since Chinese electric-vehicle maker Nio (NYSE: NIO) reported weak fourth-quarter results, Nio stock price has drifted lower and has continued to trend towards its 52-week lows.Source: Shutterstock NIO showed off a new sedan at the Shanghai Auto Show on April 16, but that was too little, too late. * 7 Cloud Stocks to Buy on Overcast Days Nio stock appears likely to reach new lows in coming sessions. Is there anything that can get the stock to rally again?InvestorPlace - Stock Market News, Stock Advice & Trading Tips A New Nio Sedan Is on the WayNIO previewed its new, four-door sedan at the Shanghai Auto Show. The company already has two crossovers and will release a new one in 2020. NIO launched the ES8 last year in June and sold 15,337 of them. Next month, deliveries of the smaller ES6 crossovers will begin. Since the ES6 will cost $52,000, compared to $67,000 for the ES8, the newer vehicle should attract more buyers than its predecessor.The ES6 could conceivably compete against Tesla's (NASDAQ: TSLA) Model Y, since TSLA's crossover is 10% bigger than its Model 3. But Nio has pricing and feature advantages over Tesla. The ES6 is more luxurious, has a higher range, and is faster than the Model Y.In an effort to promote the ES6, NIO has launched 16 popup Nio Houses in 11 Chinese cities. Nio will limit the number of cities it enters, enabling it to reduce its marketing and operating costs. NIO does not yet have a vehicle that is of comparable size to the Model 3. But Tesla's Model 3 is a bare-bones EV that does not have the same level of luxury as the ES6. Near-Term HeadwindsThe very weak performance of Nio stock is a reaction to the company's poor Q4 results and unimpressive Q1 and Q2 guidance.Meanwhile, when the government did not announce its electric-car subsidy policy in January, markets waited. In March, there was still no news about the subsidies, creating uncertainties for consumers, many of whom won't decide whether to purchase a Nio vehicle until the government announces its policy. Still, Nio has received 4,200 orders for the ES8, 1,300 of which are for the 6-seater version, which will not be available until Q2.Nio has enough capacity to meet the potential increase in demand. Modifications to its production line will enable it to manufacture 100,000 ES6 and ES8 units annually. And, due to the company's manufacturing partnership with JAK, its annual output could increase to 150,000. Moving Past Disappointing Fourth-Quarter ResultsNio's weak Q4 is fresh on the minds of investors, negating all of its supply increases and the potential government support ahead. Though its revenue surged 134% year-over-year to $500 million, its cost of sales came in at $498 million and its gross margin was just 0.4%. The good news is that its gross margin improved versus the previous year's negative 7.9% level. As more ES8 models are shipped, its gross margin could increase.Nio's research and development costs rose by over 80% to $220 million, while its sales, general, and administrative costs surged 131% to $283 million. In Q4, its net loss totaled $501 million. AnalysisIf Nio's vehicle shipments slow, then its higher supply capabilities, new model introductions and technical specifications will not excite the owners of Nio stock. Instead, the company's near-term quarterly losses could weigh on Nio stock price. For Nio stock to perform well, trade tensions between the U.S. and China must ease. That would raise consumer confidence in China and spur demand for luxury goods, including Nio's vehicles. The Valuation of Nio StockA ten-year discounted cash flow growth exit model enables investors to calculate the fair value of Nio stock based on its future cash flow. Only if Nio's revenue rises by 50% annually will Nio stock price reach $10 per share again (per finbox.io). Meanwhile, the two major analysts covering Nio stock are bullish on the shares, as their average price target on Nio stock is $10.45, according to tipranks. The Bottom Line on Nio StockNio stock is by no means a conservative investment. It is a pure EV play that depends on strong consumer demand in China. Trade tensions, lower economic growth, and falling Chinese consumer confidence could cause demand for Nio's products to continue to be weak. Conversely, a favorable trade deal between the U.S. and China, combined with a stimulative tax cut in China. would help Nio meet its sales targets. As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Cloud Stocks to Buy on Overcast Days * 6 Stable Stocks Worth Buying for Protection * 5 Active Vanguard Funds That You Have to Own Compare Brokers The post Why Nio Stock Could Be Worth Its Risk appeared first on InvestorPlace.
NEW YORK, NY / ACCESSWIRE / May 10, 2019 / Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against the following publicly-traded companies. You can review ...