NIO - NIO Inc.

NYSE - NYSE Delayed Price. Currency in USD
2.5300
+0.0700 (+2.85%)
At close: 4:01PM EDT

2.5700 +0.04 (1.58%)
Pre-Market: 8:05AM EDT

Stock chart is not supported by your current browser
Previous Close2.4600
Open2.5200
Bid2.5500 x 39400
Ask2.6400 x 40700
Day's Range2.4500 - 2.7100
52 Week Range2.3500 - 13.8000
Volume49,910,226
Avg. Volume29,933,695
Market Cap2.596B
Beta (3Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-44.1020
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est6.07
Trade prices are not sourced from all markets
  • Reuters1 hour ago

    RPT-Electric dreams in danger as funding dwindles for China's Tesla challengers

    HONG KONG/BEIJING, June 19 (Reuters) - Last year, Wei Qing and his private equity investment team visited more than 20 Chinese electric vehicle manufacturing startups. "There are too many uncertainties from when a company tells a story in the early stage, to when it produces a sample car and raises funds, to the eventual mass production," said Wei, managing director at Shanghai-based Sailing Capital.

  • Electric dreams in danger as funding dwindles for China's Tesla challengers
    Reuters12 hours ago

    Electric dreams in danger as funding dwindles for China's Tesla challengers

    HONG KONG/BEIJING (Reuters) - Last year, Wei Qing and his private equity investment team visited more than 20 Chinese electric vehicle manufacturing startups. "There are too many uncertainties from when a company tells a story in the early stage, to when it produces a sample car and raises funds, to the eventual mass production," said Wei, managing director at Shanghai-based Sailing Capital. Wei, who declined to name the EV makers his team visited, said he thinks only a few of them will survive.

  • 5 Top Stock Trades for Wednesday: BA, AVGO, ETSY, NIO, AGN
    InvestorPlace17 hours ago

    5 Top Stock Trades for Wednesday: BA, AVGO, ETSY, NIO, AGN

    A positive trade-war tweet from President Donald Trump sent stocks soaring on Tuesday, although there is some hesitation now as investors turn to the Federal Reserve meeting on Wednesday. Will it end the rally or ignite it even higher? Let's look at some top stock trades. Top Stock Trades for Tomorrow No. 1: Boeing Click to Enlarge An improving trade situation is big for Boeing (NYSE:BA), but so is the Paris Air Show. The company landed a deal with Amazon (NASDAQ:AMZN), another with Korean Air, and can look to move forward on a massive deal with Chinese airlines should the trade war take a few positive steps forward.That's being reflected in the charts, with Boeing stock jumping more than 0.9% on Tuesday.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's an important move, with BA stock over $360-range resistance for the first time in a month and over the 50-day moving average for the first time since March, when the 737 MAX incident occurred. It's also hurdling its 200-day in the process.$380 seems like a reasonable first target, with $400 as the next level beyond that. Back below $360, traders my want to stop out. Top Stock Trades for Tomorrow No. 2: Etsy Click to Enlarge Etsy (NASDAQ:ETSY) stock tried to push through $70 resistance and couldn't do it -- even on a day where tech stocks are up big.However, it's holding the 20-day and 50-day moving average confluence, which bodes well for short-term dip-buyers. Investors who take a shot here need to see uptrend support (purple line) hold if the 50-day fails as support.Others may wait for a breakout over $70, which could send Etsy stock to its March highs near $73.35, and higher should it rally above it. Is Etsy the next Amazon? Top Stock Trades for Tomorrow No. 3: Nio Click to Enlarge Nio (NYSE:NIO) stock is up big, following along with the rally in Tesla (NASDAQ:TSLA) and as Chinese stocks catch a bid. Once Nio lost $6, this thing was headed for the dumpster, but I didn't expect a fall this far.In any regard, shares are up more than 5% and were up as much as 10% on Tuesday. I want to see two things should NIO keep rallying. One, can it get back through prior downtrend support? Two, can it get through the 20-day moving average?Above these areas and Nio can get some upside traction. If they act as resistance, though, the $2.50 level is still on the table.Of all the stocks out there, Nio is not one I enjoy right now. It's in the dumpster when the market is near all-time highs. There are better picks out there than this speculative name, at least for my tastes. Top Stock Trades for Tomorrow No. 4: Broadcom Click to Enlarge Last week, Broadcom (NASDAQ:AVGO) took a beating after reporting earnings and going through the conference call. That call put a beating on the rest of the semiconductor space as well.But now? Now AVGO stock looks angry.Up 5% on Tuesday thanks to the improving trade war rhetoric -- just think what the chip space would do on news of a trade war agreement -- AVGO stock is back into $280 resistance.If $280 again acts as resistance, I want to see the 200-day again hold as support, along with uptrend support (purple line). Above $280 and I want to see AVGO run up to the 50-day. Over that mark and a move to $300 or more is possible. But remember, the company just disappointed on guidance, so there may be some hesitancy for the market to bid this one up too high.That said, it has a low valuation, plenty of free cash flow and a big dividend. If the trade war rhetoric continues to improve, AVGO likely moves higher. Top Stock Trades for Tomorrow No. 5: Allergan Click to Enlarge I do not like stocks that are locked in massive downtrends, like Allergan (NYSE:AGN). Plus, we highlighted a few healthcare charts that looked good yesterday, like Gilead Sciences (NASDAQ:GILD).Notice all of AGN's major moving averages heading lower, as well as its series of lower lows and lower highs. Downtrend resistance (blue line) is still going strong too.Should AGN hurdle downtrend resistance, look to see how it handles the 20-day. If it's not resistance, a move up to $130 is possible, although I expect it to draw in some sellers. Even if AGN can get there, the 50-day will likely be in play as potential resistance too, seeing as though it's currently at $135 and losing altitude.On the downside, watch the recent lows near $115. Below it and AGN can fall even further.I'm not saying this one is a total zombie or that it won't do well over the long term. Only that from a trading perspective, it's easier to sell stocks into resistance when they're in downtrends and buy stocks into support when they're in uptrends. Until AGN changes its tune, it's in a downtrend.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AMZN and AVGO. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post 5 Top Stock Trades for Wednesday: BA, AVGO, ETSY, NIO, AGN appeared first on InvestorPlace.

  • Nio Stock Is Basically a Lottery Ticket at This Point
    InvestorPlace17 hours ago

    Nio Stock Is Basically a Lottery Ticket at This Point

    Nio (NYSE:NIO), the electric automaker dubbed the "Tesla of China" slumped almost 4% on Friday, extending a dismal run, during which Nio stock price has plunged 39% this month and nearly 60% this year.Source: Shutterstock Following Friday's close of $2.42, one share of Nio stock barely costs more than a single Powerball ticket and there is plenty of debate regarding which might be the better investment. There could be more pain ahead for Nio stock because, although Nio stock price has been plummeting, sell-side analysts have been slow to trim their price targets on the stock. * 5 Stocks to Buy for $20 or Less The average analyst price target on Nio stock is $7.64, or about triple where the shares trade now. Last month, Bank of America Merrill Lynch analysts cut their price target on Nio stock to $3, which looked like a good idea at the time. One of the reasons for that reduction was increased competition in the China market from Tesla (NASDAQ:TSLA).InvestorPlace - Stock Market News, Stock Advice & Trading Tips Ominous Signs for Nio StockTSLA is not "perfect." TSLA stock is down more than 32% this year and there is seemingly always plenty of controversy surrounding the company. That said, Tesla is far better-positioned in the global electric-vehicle market than Nio, and TSLA is probably in better shape even in China.It is not a good look for Nio stock price to be tumbling to levels that make cups of regular coffee at some establishments more expensive than Nio stock. Certainly not when the electric-vehicle market is growing."Battery-powered electric vehicles represent just 2.1 percent of global new auto sales, the equivalent of 2 million vehicles. Sales of EVs are forecast to jump to 2.7 million this year," according to Nasdaq.Nio stock serves as a reminder that when it comes to thematic investing, picking individual stocks is hard and potentially risky. Investors who have opted for broader approaches to electric-vehicle investments are being rewarded this year. For example, the Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is up 10% year-to-date, making Nio stock look dreadful by comparison.The epic problem with NIO is that the company's sales are sliding while overall electric-automotive sales are expected to rise. Adding to that, NIO CEO William Li appears blase about the company's faltering sales."At NIO Inc., the Tesla Inc. wannabe from China, electric vehicle sales are plummeting, losses mounting and the stock price cratering," according to the Detroit News. "But founder and Chief Executive Officer William Li can't see what all the fuss is about."Li added that NIO will be profitable "in a few years." The Nio CEO is nothing if not ambitious; even though there are several thousand electric vehicle makers in China, Li is evaluating ways for his company to enter the U.S. market. Ambition is nice, but not at the expense of profitability and share price, two issues NIO is struggling with. The Bottom Line on Nio Stock: Not Now For NioIt is easy to be seduced by stocks with low price tags, but a name that appears to have value because of a cheap price can often be a value trap. There are quality stocks out there with single-digit prices. Nio stock is not yet a member of that group.Remember, stocks have low prices for different reasons, but few, if any of those reasons are positive, as Nio stock highlights. Just because something is cheap does not mean it is a good deal.As was noted earlier, analysts have been slow to downgrade Nio stock and lower their price targets on Nio, partly because some have been busy denigrating TSLA. They are likely to get around to slamming Nio stock, too. The stock appears to be bereft of catalysts and will likely head lower until it can deliver positive sales and profitability surprisesTodd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post Nio Stock Is Basically a Lottery Ticket at This Point appeared first on InvestorPlace.

  • Bloomberg2 days ago

    Tesla and NIO Fires in China Spur Electric-Car Safety Checkups

    (Bloomberg) -- China is ordering carmakers to conduct checks on electric vehicles after cars made by Tesla Inc. and NIO Inc. caught on fire, spurring anxiety over the safety of battery-powered automobiles.Companies need to check for potential safety hazards with battery boxes, waterproof protection in cars, high-voltage wiring harnesses, as well as on-board charging devices, the country’s industry and technology ministry said in a statement posted on its website. Automakers need to submit their findings by the end of October.The order comes after a run of fires involving EVs in what is the world’s biggest market for the new technology. NIO -- a Nasdaq-listed electric car startup from Beijing with aspirations to rival Tesla -- said Friday one of its ES8 SUVs caught fire, the third time in about two months the model has been involved in an incident. Tesla said it was investigating after video of one of its cars bursting into flames in Shanghai spread on Chinese social media in April. Weeks later, there were reports of a Tesla Model S combusting in Hong Kong.Tesla Fires Sound Alarms About Electric-Car Battery SafetyThe Chinese ministry said safety checks should also be carried out on cars that have already been sold, with special attention paid to highly used vehicles such as cabs, according to the statement.Lithium BatteriesElectric cars are increasingly using high-density lithium batteries to extend their driving ranges, as demand for the vehicles climbs. A mix of subsidies and favorable policies helped push Chinese EV sales beyond 1 million units last year, luring a raft of newcomers to the business.The $18 Billion Electric-Car Bubble at Risk of Bursting in ChinaIn 2018, China recorded at least 40 fire-related incidents involving new-energy vehicles, a fleet that includes pure battery electric, hybrid plug-in and fuel-cell vehicles, according to the State Administration for Market Regulation. The watchdog has called for scrutiny of NEV quality and recalled more than 130,000 cars last year.China isn’t the only place where EV fires are on the radar. Audi said June 10 it is recalling its first all-electric vehicle sold in the U.S. because of the risk of battery fire. About 540 E-Tron SUVs have been voluntarily recalled on risk that moisture can seep into the battery cell through a wiring harness glitch. Talks with German authorities about a potential recall in Europe are ongoing, Audi spokesman Udo Ruegheimer said last week.NIO ProbeNIO is cooperating with an official investigation into an ES8 fire in Shanghai, with the cause of the blaze to be made public once the report is finalized, said Izzy Zhu, a NIO vice president in charge of user development. NIO its conducting its own probe into last Friday’s fire, the company said in a separate statement.EVs are no more prone to accidents or fires than gasoline-powered cars -- and might be less so, according to a 2017 report by the U.S.’ National Highway Traffic Safety Administration. But that report also notes battery technology is still evolving and there isn’t a consensus on safe system design.To contact Bloomberg News staff for this story: Tian Ying in Beijing at ytian@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Emma O'Brien, Chester DawsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Why the Rally of Tesla Stock Could Reverse
    InvestorPlace2 days ago

    Why the Rally of Tesla Stock Could Reverse

    Since December, Tesla (NASDAQ:TSLA) stock has been agonizing for the longs, as the price had gone from $356 to a low of $177, despite the rally of the stock market. During this period, there have been nice rallies in the shares of giant tech companies like Facebook (NASDAQ:FB), Netflix (NASDAQ:NFLX) and Microsoft (NASDAQ:MSFT).Source: Mike Lau via Flickr (Modified)Tesla stock has generally been volatile. After all, most new automakers have failed miserably!But over the past week, TSLA stock has risen 5%. Can this uptrend last? Or could this mostly be a relief rally by TSLA stock as the short sellers close out their positions? Keep in mind that, during the first quarter, the company reported a disappointing 63,000 deliveries.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 7 Best Tech Stocks to Buy for the Second Half of 2019 Well, of course, TSLA CEO Elon Musk is supremely optimistic. At this week's shareholder meeting, he set out to answer some of the questions swirling around Tesla.Perhaps the most important statement from Elon Musk was the following: ""I want to be clear: there is not a demand problem. We have a decent shot at a record quarter on every level. If not, it will be very close."Let's hope so. Because if TSLA doesn't deliver on the forecast by Elon Musk, then TSLA stock will certainly take another hit. Other Risks Facing Tesla StockThe irony is that a spike in deliveries may create its own issues for TSLA. Note that Elon Musk also said that Tesla's growth will probably not be cheap. If TSLA's margins decline, the increased production will put lots of pressure on its bottom line. It's also worrisome that TSLA has a solar-installation business, which is also capital intensive. At some point, it would not be surprising for Elon Musk to need to raise billions more from Wall Street.Another concern is that Tesla's overall business is getting more complex. It's building a massive battery factory in China and has one planned for Europe as well. TSLA is also looking at entering the insurance industry and is considering building a robotaxi network of 1 million vehicles.At the shareholder's meeting, Elon Musk even mentioned that TSLA may get into the mining business, in order to have more control over the supply of commodities it uses, like lithium and cobalt. In the meantime, the company will start producing the Model Y, a compact SUV. The Model Y and the Tesla Semi freight truck are both slated to be launched in late 2020.Elon Musk has never lacked for ambition. But even he has limits. Does he really need to do all these things? The Bottom Line on Tesla StockBased on analysis from third parties like Electrek, it does look like TSLA has seen a pick-up in demand during the past couple months. Yet this uptick may prove to be temporary.One reason is that the federal tax credit for purchasing Teslas will decline from $3,750 to $1,875 by the end of this month. In other words, people may be rushing to buy Tesla's vehicles before the credit drops. A similar phenomenon probably occurred at the end of last year, when Tesla's deliveries reached a record.Meanwhile, TSLA has been aggressively reducing the prices of its vehicles. That could boost its unit sales, but also hit its margins. According to analysts at Cowen: "Basic microeconomic theory would suggest that goods or services that don't have a demand problem, don't see their prices lowered by half a dozen times in 4-5 months."Finally, competition is likely to become a bigger factor, especially in China, which is a meaningful part of Tesla's growth strategy. There are multiple companies that only make electric vehicles in China, including Nio (NYSE:NIO) and more well-established firms, such as BYD (OTC: BYDDF).So in light of all this, it's probably best to be skeptical on TSLA stock despite its latest rally.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. 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 * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post Why the Rally of Tesla Stock Could Reverse appeared first on InvestorPlace.

  • China’s Car Sales Aren’t Just Falling Anymore, They’re Crumbling
    Market Realist5 days ago

    China’s Car Sales Aren’t Just Falling Anymore, They’re Crumbling

    Car sales in China, the world’s biggest automotive market, fell year-over-year in 2018 for the first time in more than two decades. Automotive sales have contracted in China for 11 consecutive months now. The slowdown only seems to be deepening, and last month, China’s car sales fell a whopping 16.4%.

  • 3 Top Value Stocks to Buy in June
    Motley Fool5 days ago

    3 Top Value Stocks to Buy in June

    With rising stock market volatility, investors have a chance to scoop up intriguing value stocks this summer.

  • Hedge Funds Have Never Been This Bullish On NIO Inc. (NIO)
    Insider Monkey6 days ago

    Hedge Funds Have Never Been This Bullish On NIO Inc. (NIO)

    Does NIO Inc. (NYSE:NIO) represent a good buying opportunity at the moment? Let’s quickly check the hedge fund interest towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on satellite photos and other research activities, so it is no wonder why they tend to […]

  • Business Wire9 days ago

    Robbins Arroyo LLP: NIO Inc. (NIO) Sued for Securities Violations

    Shareholder rights law firm Robbins Arroyo LLP informs investors that a shareholder has filed a complaint against NIO Inc. for alleged violations of the Securities and Exchange Act of 1933 based on alleged misrepresentations related to the company's September 2018 initial public offering .

  • Tesla Stock Will “Serve” Shareholders Well … For a Limited Time
    InvestorPlace9 days ago

    Tesla Stock Will “Serve” Shareholders Well … For a Limited Time

    In the classic Twilight Zone episode To Serve Man, space aliens descend upon earth, bringing with them advanced technologies. With worldwide prosperity achieved thanks to these extraterrestrial innovations, sovereign states destroyed all their weaponry. The aliens earned the earthlings' trust through their book entitled, "To Serve Man." Similarly, a genius named Elon Musk gave investors Tesla (NASDAQ:TSLA) and TSLA stock.Source: Shutterstock Like the fictional aliens, Musk gave consumers something they've never seen before. In our case, it was electric vehicles that didn't stink. Previous electric or hybrid vehicles appealed only to drivers who were strictly focused on technical statistics and efficiencies. They certainly didn't appeal to customers who wanted to look good in their new rides.When it broke out, TSLA was like a breath of fresh air. The company first rolled out an EV roadster, then sedans and SUVs. They were -- and still are -- sleek and sexy machines. It's no wonder Tesla stock jumped the way it did a few years back.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut like the Twilight Zone episode, not everything was well. When the aliens offered the earthlings apparently free travel to their homeland, people jumped on the opportunity en masse. There finally was a way for humans to break out of their mold. * 10 Stocks to Buy That Could Be Takeover Targets There was just one problem: "To Serve Man" was a cookbook!Of course, I'm not suggesting that Elon Musk is a cannibal: he's high but he's not that high. But he committed a similar action. Tesla EVs are gorgeous cars that perform well under the right circumstances. But in anything less than an ideal environment, EVs quickly lose their appeal.And I believe now that this vulnerability will undermine TSLA stock. The Core Product for TSLA Stock Is Fundamentally FlawedPrior to Musk ensnaring himself in unnecessary troubles and controversies, I was bullish on Tesla stock. Sure, the company has always had its critics who frequently complained about rising debt and that awful cash burn. But eventually, I thought that the power of the TSLA brand -- specifically, its EVs and innovative technologies -- would right the ship.Frankly, I was wrong. EVs, whether from Tesla, Toyota (NYSE:TM) or General Motors (NYSE:GM), won't work, at least for some time. They're inherently flawed, only truly serving the interests of the wealthy and geographically privileged. Living in San Diego, I was naturally fixated on the tree and not on the raging forest fire.Whether you want to buy TSLA stock or a Tesla car, you desperately need to know something: EVs only perform to advertised specs in ideal conditions. If temperatures hit either hot or cold extremes, your battery capacity (and thus, your range) will drop considerably.During last winter's unusual chill, EV owners reported a 50% reduction in range.That's not a statistic you should take lightly. How would you feel if your car's gas mileage absorbed a 50% haircut because it was raining outside? This is exactly the reason why I'm avoiding Chinese EV-maker Nio (NYSE:NIO).But the worst part is that nothing economically practical in the nearer term can be done about this issue. When EVs drive in hot weather, their range also declines, especially if the driver cranks up the air conditioning. That's because the EV battery must provide all the primary and secondary power needs.Eventually, Tesla will figure out this problem and improve efficiencies, perhaps with solid-state batteries. But such innovations will take time, a luxury that TSLA stock does not have. Dependency on Mass Appeal Hurts Tesla StockRange Rovers and Maseratis are among the most beautiful cars on the road. They're also some of the least-reliable offerings. Yet they remain desirable because of their consumer base. Essentially, the people who buy such cars can also afford their problems.I probably wouldn't be that alarmed if Tesla stock was levered strictly to their original customer profile: rich yuppies. A recent academic study pointed out that the average EV owner has a household income of $140,000. These are folks that don't care about capacity reduction because they probably don't drive that much. And they probably live in a southern Californian paradise. * 7 Dark Horse Stocks Winning the Race in 2019 But Tesla isn't in the business to move Maseratis. They made a huge deal about the Model 3, their affordable EV for the masses. Thus, the TSLA stock price moved on rumors and news about Model 3 production stats.Here's my question: What happens to those new owners who didn't anticipate the EV platform's quirks and issues? After all, not everyone lives in southern California. Certainly, not everyone makes $140,000 a year.And while Tesla and other EV makers crank away at these issues, the old internal-combustion engine is still making strides. I'll bet that many disappointed Model 3 owners will revert to traditional cars. When that happens, it might be lights out for TSLA stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 4 FANG Stocks Won't Be Bitten By Regulation Threats * 10 Stocks to Buy That Could Be Takeover Targets * 4 Big Bank Stocks Rebounding Compare Brokers The post Tesla Stock Will a€œServea€ Shareholders Well … For a Limited Time appeared first on InvestorPlace.

  • Nio Stock Price Could Hit Zero
    InvestorPlace12 days ago

    Nio Stock Price Could Hit Zero

    When Nio (NYSE:NIO) went public last year, it had an intriguing story. By buying Nio stock, investors were able to purchase a piece of "the Tesla (NASDAQ:TSLA) of China". Given that the NIO stock price implied a valuation a fraction of that of Tesla, while the Chinese electric vehicle market was, and could be, far larger than America's, Nio stock looked attractive.Source: Shutterstock The problem at the moment is twofold. First, as I wrote last month, that story wasn't entirely accurate. Like other supposed U.S.-China :twins" - Alibaba (NYSE:BABA) and Amazon.com (NASDAQ:AMZN), along with iQiyi (NASDAQ:IQ) and Netflix (NASDAQ:NFLX) - the difference between NIO and TSLA outweigh their similarities. Secondly, even using that story as a shortcut to understanding Nio, neither side of the story looks attractive. Tesla stock has dropped 50%. And investors again are fleeing from Chinese equities. * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% In the case of Nio stock, the decision to run looks wise. The Nio stock price, currently below $3, might seem cheap, but it isn't. And the company has very real difficulties ahead. These problems can get a lot worse, and they could eventually cause the owners of Nio stock to get wiped out. Nio's Earnings Show the Shares Can Reach ZeroNio stock clearly is a long-term play. The company is barely past the start-up stage; it only started delivering vehicles less than a year ago. In that context, it might seem unwise to overreact to a single quarter or to short-term headwinds.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut the company's recent struggles, which are expected to extend into at least the second quarter, highlight its broader, longer-term risk. Its deliveries in Q1, at just under 4,000, were down nearly 50% from the previous quarter. As management explained in the Q1 earnings release, the decline of Nio stock price was caused by lower subsidies, a slowing economy in China, increased competition, and the impact of the Chinese New Year.Except for New Year-related seasonality, which of those negative, catalysts will ease? In the current quarter, the company expects "an even more challenging sales environment," as CFO Louis Hsieh put it. "Competition continues to accelerate," he added.These aren't single-quarter problems. And that is a big problem for NIO. What Changes?The negative factors that are weighing on the automaker's Q1 and Q2 results are unlikely to change. Subsidies are slated to be phased out at the end of next year. That's a notable problem for Nio, which targets the high end of the market. Tesla has struggled this year because of the decline of its subsidies in the U.S. market. It's not clear why Nio's experience in China should be much different. Higher effective prices generally lead to lower demand.Macroeconomic worries could persist for some time in China. Observers have been waiting for the Chinese economy to cool for years. The trade war shows no sign of ending any time soon. And so NIO will lose subsidies that lower the retail cost of its vehicles just when a higher number of Chinese consumers will likely become more price-conscious.But competition is the real issue at this point, and that's the major difference between Tesla and Nio. Tesla, at least, had the U.S. electric-vehicle market to itself. Indeed, the company gets credit (and deservedly so) for helping to ignite the race to develop new electric vehicles.NIO is not close to having the market to itself in China. The country's largest EV manufacturer is Beijing Electric Vehicle Co., which delivered 158,000 cars in 2018. Nio is on pace for something like 20,000 this year. In fact, Nio's market share is minuscule, and that's before Tesla arrives in China later this year or in 2020.NIO's deliveries already are plunging amid factors that could persist for some time. It's hard to see that as anything other than bearish for NIO stock, even at its lows. How Nio Stock Price Can Sink to ZeroAdding to the pressure, Nio doesn't even manufacture its own vehicles ; it outsources production. However, its gross margin was negative in Q1, and the company posted an adjusted operating loss of roughly $360 million.The company does have over $1 billion in cash, but that may not last more than a couple of quarters. NIO also has $1.35 billion of debt, meaning that even if it eventually licenses or sells its technology to stay afloat, equity holders likely would wind up being wiped out.Nio isn't necessarily going bankrupt in three quarters or even three years. But it does not have unlimited time. It's unlikely to be able to borrow much, given its meager asset base. Selling additional Nio stock will be difficult and would send Nio stock price even lower.It NIO reports another quarter or two like Q1, investors will start questioning the company's sustainability. Yet, in that time, Nio has to start beating its rivals and begin narrowing its losses quickly. The company has a new model on the way, but it's been delayed. And if China's economy slows further, demand is going to fall sharply for its current vehicle and its upcoming vehicle.It might seem like these risks are priced into Nio stock. With a market capitalization of $3 billion, however, that's a tough case to make. NIO stock price still can fall 100%. Even those looking to time the bottom, or those who still believe in the company's long-term opportunity, need to keep that in mind.As of this writing, Vince Martin has a hedged bearish option position in TSLA. He has no positions in any other securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% * 7 Stocks to Buy That Don't Care About Tariffs * 5 Healthcare Stocks to Pick Up From the Wreckage Compare Brokers The post Nio Stock Price Could Hit Zero appeared first on InvestorPlace.

  • Tesla Stock May Have Found A Bottom But It’s Still In Trouble
    InvestorPlace12 days ago

    Tesla Stock May Have Found A Bottom But It’s Still In Trouble

    Tesla (NASDAQ:TSLA) shares seem to have found a bottom. Tesla stock had lost half its value -- and touched its lowest levels in almost two and a half years. But after reaching $177, TSLA stock has rallied by more than 15%.Source: Shutterstock The catalyst seems to be better-than-expected sales for the month of May, at least as reported by InsideEVs. The sale of emissions credits to General Motors (NYSE:GM) and Fiat Chrysler (NYSE:FCAU) seems to have helped as well. With Tesla stock much cheaper, buyers have stepped in.In the context of TSLA's plunge, that perhaps makes some sense. But two pieces of good news don't change the larger problems for Tesla … and seem unlikely to permanently change the broader trajectory of Tesla stock. I've been a TSLA bear for some time, and continue to hold a bearish options position on the shares. Recent developments have hardly changed my mind, and even investors who see TSLA stock differently should remember that many problems remain.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Death Spiral DebunkedWhen it comes the Model 3, the estimate from InsideEVs looks like very good news. The website estimated deliveries of nearly 14,000 Model 3 units. That's a notable increase from a little over 10,000 in April -- and more than double the year-prior figure of 6,250.The growth -- for now -- seems to contradict bearish claims that Tesla was entering a death spiral, or struggling with plunging demand after burning through Model 3 reservations. Demand seemingly isn't exhausted. * 6 Big Dividend Stocks to Buy as Yields Plunge That said, the numbers still house some concerns, notably for the Model S and the Model X. On the Q1 conference call, CEO Elon Musk had projected a return to annualized demand for the S and X of 100,000 units. InsideEVs estimated U,S, deliveries for May of just 2,400, a rate under 30,000 a year. Europe can help that number but registration data in key Tesla markets suggest those models are struggling on the Continent as well.May numbers might be better than those of April but they're not good enough. The bear thesis here has been that the Model 3 would eat into Model X and Model S sales, something that's playing out to some extent. Given that the Model 3 is lower-priced, the shift away from X and S sales will have a negative impact on margins and potentially put Tesla's ongoing profitability at risk. Model 3 Isn't Enough for TSLA StockModel S and Model X weakness goes to the broad issue with TSLA stock, even near the lows. The Model 3 isn't enough. This still is a company with a $35+ billion market capitalization. It's still trading at 1.62x revenue in an industry where nearly every other rival trades at much less than 1x.The Model 3 -- by Musk's own admission, in his "master plan, part deux" -- isn't enough to support that valuation. Profits aren't big enough. Capital needs, now and going forward, aren't enough. Rather, the Model 3 is supposed to be the base for Tesla's additional efforts to revolutionize automobiles and the energy industry.Investors have good reason for their increasing skepticism about those other efforts. Musk's announcement of "robotaxis" eventually worth $250,000 each was met with disbelief. The same largely goes for his predictions of full self-driving vehicles by next year. Musk, in particular, seems to have finally broken too many promises.There's another problem, too: Tesla's capital spending. It continues to fall, which raises the question of what, exactly, the company is doing to prepare for the many new products offered. Musk insists the Tesla Semi will arrive next year -- but there's nowhere, at the moment, to actually build it. The Model Y will be built in Fremont, and take up the rest of the space there, as Musk discussed after Q1.The China gigafactory is making quick progress but is being built in the middle of a trade war that is driving anti-American sentiment. Competition from Nio (NYSE:NIO) and myriad other in-country EVs gives Chinese consumers plenty of options. * The 10 Best Stocks for 2019 -- So Far And the energy business is in clear disarray, with revenues plunging and the solar roof nowhere to be found. Tesla Stock Has More DownsideUnlike some bears, I don't believe Tesla is heading for Chapter 11. The company may need to raise more capital, as it did earlier this year. But it's likely it could sell itself if execution doesn't improve, a recession hits, or growth disappoints. There's value in the Tesla business.But I continue to believe that that value is not nearly $50 billion (including its debt), or close. In other words, TSLA stock is badly overpriced. At 30x+ 2020 EPS estimates, for an automotive manufacturer, is a huge multiple. (GM and Ford (NYSE:F) are valued at 5.6 and 12.6, respectively.) Musk has proven to be an exceedingly poor manager, and an exodus of executives leaves little proven talent there to guide him.The solar business is a mess. Tesla very well could have to dilute its shareholders again in the next 24 months. And there's the cyclical risk that affects not just TSLA stock, but the equity of every auto manufacturer.May numbers -- even if correct -- don't dispute that thesis. In fact, the Model S and X numbers might even strengthen it. Model 3 growth is helpful - but it's not enough. Tesla stock can, and should, start falling again.As of this writing, Vince Martin owns a hedged, bearish put option position in TSLA. He has no positions in any other securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 4 FANG Stocks Won't Be Bitten By Regulation Threats * 10 Stocks to Buy That Could Be Takeover Targets * 4 Big Bank Stocks Rebounding Compare Brokers The post Tesla Stock May Have Found A Bottom But It's Still In Trouble appeared first on InvestorPlace.

  • NIO Continues Its Slide: Here's Why It Dropped on Thursday
    Motley Fool13 days ago

    NIO Continues Its Slide: Here's Why It Dropped on Thursday

    The Chinese electric-car maker's recent results, a joint venture many are calling a government bailout, and cuts to its international presence have sent investors to the sidelines.

  • Reuters13 days ago

    Warburg Pincus nearing close of $4.3 bln China-Southeast Asia fund - sources

    Warburg Pincus LLC is nearing the final close of an at least $4.25 billion private equity fund focusing on Chinese and Southeast Asian investments, people with direct knowledge of the matter told Reuters. The final amount available for investment could exceed $4.3 billion with additional capital from Warburg Pincus itself, the people said, declining to be named as they were not authorised to speak to the media. Warburg Pincus is expected to formally announce the closing of the fundraising as early as this month, the people said.

  • Nio Stock: A Chinese Company Comes Home
    InvestorPlace14 days ago

    Nio Stock: A Chinese Company Comes Home

    Editor's Note: This article was corrected on June 5, 2019, to correctly specify which office will be closing.Nio (NYSE:NIO), billed as a Chinese version of Tesla (NASDAQ:TSLA), is doing something Tesla can't do -- going under the protection of its government.Source: Shutterstock A new joint venture called Nio China amounts to a government bailout, with $1.45 billion being funneled into a manufacturing relationship between Nio and state automaker GAC.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe joint venture was announced as Nio delivered a supremely disappointing first quarter. Unaudited figures showed sales cut in half from the previous quarter, and even those had a negative margin. The company lost $395 million, 38 cents per share, on sales of $243 million. It delivered 3,989 of its ES8 vehicles.The shares have now lost half their value during the year and opened for trade today at $3.07, a market cap of around $3 billion. A Chinese ModelSome U.S. investors found the company's conference call hard to follow. What Americans may have focused on was CFO Louis Hsieh's speculation about ES8 sales being cannibalized by a new model, the ES6, announced during the most recent quarter. This is a sporty and less-expensive sport utility vehicle in contrast to the ES8 sedan. * The 10 Best Stocks for 2019 -- So Far The real news is that China's government isn't going to let Nio fail. China remains dedicated to an electric car future, despite Nio's failure to achieve its ambitions so far. To that end, Nio is closing its San Francisco office. The company is downsizing its efforts even in its home market, opening "pop-up" Nio Houses instead of the elaborate clubhouses it had been offering in major cities.Nio is far from China's only bet on electric vehicles, although it was the only one to list in the U.S. market and focus on the luxury segment. The government still sees value in Nio's patents, like one to charge vehicles more quickly at a high voltage and one to make batteries last longer.Government-controlled electric car firms have several joint ventures, including with Volkswagen (OTCMKTS:VLKAY). Warren Buffett, through Berkshire Hathaway (NYSE:BRK.A) bought one-quarter of BYD (OTCMKTS:BYDDF), now the largest Chinese electric car maker, a decade ago when BYD was still just a battery business. BYD (it stands for Build Your Dreams) is now the largest Chinese electric car maker with a full line of products and reported a strong first quarter.Chinese industrial policy is often described by outsiders as "communist," but according to Joe Studwell in How Asia Works, it has much in common with South Korea. China subsidizes many companies in cutting-edge technology and maintains support for those that win export markets. U.S. policy, by contrast, is to pass state-funded science to the market and then leave things alone.China is now in the process of winnowing out losers, steadily reducing subsidies for electric cars. Nio's fourth quarter was a rush to beat a subsidy cut, and another cut is scheduled to take place in June. The Bottom LineAmerican investors made a mistake in assuming that because Nio was playing in the U.S. stock market and had dreams like those of Tesla, that it was a Chinese Tesla. It was always more Chinese than Tesla.In conventional terms, analysts are correct to downgrade Nio and consider it dead money. In Chinese terms, Nio has made good progress on both the technical and marketing fronts, progress from which the Chinese auto sector can benefit. The fate of Americans' stock investments matters less than proving China can develop and sell a high-end electric.China remains committed to electric cars. Anyone who has tried to breath in Shanghai or Beijing understands why.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Retailers Including Disney Agree to Ditch On-Call Scheduling * The 10 Best Stocks for 2019 -- So Far * 7 Small-Cap ETFs to Buy Now Compare Brokers The post Nio Stock: A Chinese Company Comes Home appeared first on InvestorPlace.

  • Benzinga15 days ago

    Nio Trades Higher After Releasing May Deliveries

    Chinese electric vehicle maker Nio Inc (NYSE: NIO) reported 1,089 ES8s were delivered in May, and a total of 2,213 vehicles delivered through the first two months of the second quarter. As of May 31, deliveries of the Nio ES8 electric SUV, reached 17,550 total vehicles. "In light of the challenging macroeconomic and Chinese auto market backdrop, our team has been working to deepen our market penetration and expand our channels.

  • GlobeNewswire15 days ago

    NIO Inc. Provides May 2019 Monthly Delivery Update

    NIO Inc. (“NIO” or the “Company”) (NIO), a pioneer in China’s premium electric vehicle market, today provided its May 2019 delivery results. “In light of the challenging macroeconomic and Chinese auto market backdrop, our team has been working to deepen our market penetration and expand our channels.

  • Unproven EV Market Threatens to Sink Nio Stock to Zero
    InvestorPlace15 days ago

    Unproven EV Market Threatens to Sink Nio Stock to Zero

    InvestorPlace readers may know that I'm not the biggest fan of Chinese stocks. Although in certain cases this segment provides upside, more often than not, the longer-term picture remains questionable. Such is the case with Chinese electric-vehicle manufacturer Nio (NYSE:NIO). Within a half-year period, NIO stock rudely transitioned from Wall Street heartthrob to persona non grata.Source: Shutterstock Earlier this year, I took a negative view on NIO, juxtaposing its introduction with the now-defunct DeLorean Motor Company. Both companies produced visually stunning cars designed to appeal to the mass consumer market. However, both upstarts suffered credibility issues that eventually reached the bottom line. Things got so bad for DeLorean that the brand and the man behind it fell ignominiously from grace. At least his car was immortalized by Hollywood. * 7 Stocks to Buy for Monster Growth Admittedly, that sounds like a "click-baity" thing to say. As our own Tom Taulli mentioned, China enjoys the largest EV market in the world. Plus, this segment has grown impressively in recent years.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYet Taulli remains cautious on Nio stock for good reason: mere size doesn't directly translate to higher performance. Otherwise, Michigan would always win the national championship.Put another way, NIO isn't taking advantage of its home market. Since June 2018, the company sold 15,000 units of its flagship ES8 SUV, according to Quartz contributor Echo Huang. However, that's only 1% of China's EV sales. Seems like NIO has lost the EV roadmap.So while EV may be robust in China, NIO isn't eating much of that pie. That hurts the longer-term outlook for the Nio stock price. But another factor, science, can kill it. EVs Are the Future … of the FutureWhen you watch as much YouTube as I do, you come across some conspiracy theories. One of my favorites is this: J.P. Morgan -- the man, not the bank -- secretly knew that EVs were inherently superior to steam and fossil-fuel alternatives. However, he wanted to profit from the scarcity fear. Thus was born the petroleum-fueled cars we mostly enjoy today.But like most conspiracies, sound and reasonable explanations exist, too. In this case, the combustion engine probably won out because it was the most effective platform in most circumstances. Subsequently, this is a history lesson that might sting the Nio stock price.I say that because it's already hurting Tesla (NASDAQ:TSLA). Back when I was bullish on TSLA, I praised the company for developing great-looking cars that ran on electricity. On the other hand, Toyota's (NYSE:TM) Prius is just sad.But that's just one superficial component that Tesla addressed. It's most important contribution to EVs is range. That assuaged consumer fears and many jumped on board.However, these same drivers are coming across another underappreciated problem. You see, EV batteries have tight thermal tolerances for peak performance, typically between 60 to 80 degrees; in other words, San Diego weather.For you poor souls who don't live in San Diego, you're going to suffer inefficient batteries that take longer to charge during the winter. In some states, that means your Tesla will be somewhat useless for a quarter of the year.Tesla owners are finding this and other temperature-related inconveniences out the hard way. So, too, will NIO owners, and that's why I'm not big on NIO stock.Bear in mind that many parts of China experience bitterly cold winters. Once word spreads about EV inefficiencies, the negativity will cut the practical market for NIO stock. Cost Structure Doesn't Work for Nio StockTesla and EV bulls will counter my pessimism, stating that scientists are working on longer-term solutions for temperature-sensitive batteries. Right now, serious research is occurring to develop solid-state batteries. These don't have liquid inside, so they're much more adaptable to outside conditions.Great. We still have two problems. First, this research is very much laboratory research. Therefore, we might have to wait a decade before companies implement them in the automotive market. Second, and more importantly, how much will a solid-state battery going to cost? * 7 Bank Stocks to Leave in the Vault I'm no expert but I'm guessing quite a bit. This segues into the terrible financial situation for NIO. The company is stretched widely, essentially requiring a government bailout. Still, here's the ugly reality. Even if NIO fixed their internal dilemmas, they must address scientific challenges.As things currently stand, EVs are desirable prima donnas. They save the environment, but they're expensive and inconsistent anywhere but San Diego. Obviously, NIO can eventually address this challenge with solid-state batteries. But then they have to raise the price of their cars and kill margins which are already on life support.To sum up, NIO stock has internal and industrial headwinds. We haven't even talked about the damage to China that the trade war will inflict. From all angles, this just looks like a losing bet.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Monster Growth * Ranking the Top 10 Stock Buybacks of Last Year * 5 Stocks Under $10 With Big Upside Potential Compare Brokers The post Unproven EV Market Threatens to Sink Nio Stock to Zero appeared first on InvestorPlace.

  • MarketWatch16 days ago

    Nio's stock extends selloff toward record low on heavy volume

    Shares of Nio Inc. sank 6.6% toward a record low in very active midday trade, extending the sharp losses suffered last week, as investors expressed concerns about weak orders and competition from rival electric-car maker Telsa Inc. . Trading volume swelled to 33.0 million shares, enough to make it the NYSE's most active stock. The stock plunged 21% last week 37% in May. Meanwhile, Tesla shares shed 2.0% toward a 2 1/2-year low, after falling 2.9% last week for a fourth-straight weekly loss, as a 22.4% tumble in May. In comparison, the S&P 500 fell 0.3% Monday after losing 2.6% last week and 6.6% last month.

  • Benzinga17 days ago

    Bulls & Bears Of The Week: Apple, Nio, Snap, Uber And More

    Benzinga has examined prospects for many investor favorite stocks over the past week. Bullish calls included two recent high-profile IPOs and a financial giant. Bearish calls included the iPhone maker, ...

  • Could a New Car Launch Save Struggling Nio Stock?
    InvestorPlace19 days ago

    Could a New Car Launch Save Struggling Nio Stock?

    Shares of Chinese electric vehicle (EV) manufacturer NIO (NYSE:NIO) have been under serious pressure for most of 2019. Early in the year, NIO stock got a huge bump from favorable coverage in a "60 Minutes" special.Source: Shutterstock That rally was ultimately short-circuited by an announcement from management that early 2019 deliveries were trending below late-2018 levels amid a slowdown of China's auto sector. NIO's delivery volumes have remained depressed ever since, and Nio stock price has sputtered from above $10 earlier this year to just above $3 today. * 7 Stocks to Buy for Monster Growth But there's reason to believe a turnaround may be in the cards for Nio stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe bull thesis on Nio stock goes something like this: NIO's early 2019 delivery numbers have been weak, mostly because the China auto market has been weak. But if trade tensions between the U.S. and China deescalate, China's economic conditions and consumer sentiment will improve. That will re-accelerate the growth of China's auto market, resulting in strong delivery numbers for NIO.Further, NIO is slated to launch a new car (the ES6) in June. If this launch happens at the same time that China's auto market starts to pick back up, then NIO's delivery volumes in the second half of 2019 could benefit from a double tailwind.A huge boost in delivery volumes in the back half of the year will naturally lead to a huge rally by Nio stock. But will this bull thesis on NIO play out as planned?Maybe. Maybe not. The bull thesis on Nio stock hinges on two things: economic conditions in China need to improve, and the ES6 has to be a huge success. Both of those things may not materialize. Thus, until investors start to see some traction on either of those fronts, Nio stock will remain weaker for a long time. If Everything Goes Right, Nio Stock Price Can Rise TremendouslyNIO is an early-stage company in the potentially enormous China electric vehicle market. As a result, if everything goes right for this company over the next several years, Nio stock could at least double or triple.The math isn't hard to follow. China is home to the biggest auto market in the world. That market is growing rapidly, thanks to massive urbanization. Back in 2012, China accounted for roughly 25% of global car sales with 15 million vehicle sales. In 2017, China's share zoomed to 35%, with nearly 25 million vehicle sales. Over time, this share will keep growing, albeit at a slower rate as the China urbanization boom slows. By 2030, China should account for roughly 40% of global auto sales, which should equate to about 32 million vehicles.In the big China auto market, the primary growth area is EVs. From 2015 to 2018, EV unit sales in China have grown at an 80%-plus compounded annual growth rate, with EVs rising from under 1% of all vehicles sold in 2015 to over 4.5% in 2018. This year, EV unit sales in China are expected to hit 1.8 million, or roughly 7% of all vehicles sold. That trend will persist thanks to legislation in China that promotes EV adoption. By 2030, the EV penetration rate will likely be around 25%, giving the EV market a unit count of roughly 8 million cars.NIO is currently a very small player in the China EV market. Nearly 1.2 million EVs were delivered in China last year, and only around 11,000 of NIO's ES8 were delivered, implying market share of less than 1%. But the idea is that NIO, like Tesla (NASDAQ:TSLA) will consistently build out and ramp production of its new vehicles. driving gradual market share gains.Assuming NIO's market share reaches 5% by 2030, that would imply 400,000 deliveries by 2030. At an average selling price of $50,000, its total revenue would be $20 billion. Gross margins should hit 20%, thanks to its growth, and its operating-spending rate should fall to 10%. Thus, its operating profits would be around $2 billion. Taking out 25% for taxes, that implies $1.5 billion in net profits by 2030, which, based on a market-average forward multiple of 16, equates to a $24 billion market cap for Nio stock in a decade.Nio stock currently has a market cap of roughly $3.1 billion. Consequently, if everything goes right for this company, Nio stock price could rise many times from its current levels. Everything Probably Won't Go RightThe problem with the aforementioned multi-bagger bull thesis on Nio stock is that it bakes in a lot of risky assumptions about the growth of NIO.First of all China's auto market may not continue to grow. It's already showing signs of weakness this year against the backdrop of a slowing economy. If China's economy continues to slow, the auto market might just stall out around 25 million vehicles per year. EV penetration rates are very likely to continue to go up. But 25% share may be aggressive. Perhaps 20% share is more realistic, implying 5 million EV unit sales in China in 2030.Most importantly, NIO could struggle to gain market share. Right now, the ES8's delivery volumes are already weakening after just a few months of production. Set to launch in June, the ES6 has attracted a huge number of pre-orders. But so did the ES8.If the ES6 and NIO's subsequent vehicles decelerate in a similar fashion as the ES8, then NIO will never hit 5% market share. That number will more likely be closer to 2%, implying 100,000 deliveries for NIO in 2030.Using the same math as above ($50,000 average selling price, 20% gross margins, 10% opex rate, and 25% tax rate), NIO could report just $375 million of net profits by 2030. Based on a forward multiple of 16, which is average for the market, that implies a 2029 valuation target of $6 billion, which represents a return of just 4% per year. The Bottom Line on Nio StockNIO stock has fallen so far, so quickly, and has broad exposure to a rapidly growing sector. Consequently, if all goes right, Nio could increase multiple times from its current levels.But current trends imply that everything won't go right for NIO over the next several years. Until those trends turn around, Nio stock price will remain depressed.As of this writing, Luke Lango was long TSLA. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Monster Growth * Ranking the Top 10 Stock Buybacks of Last Year * 5 Stocks Under $10 With Big Upside Potential Compare Brokers The post Could a New Car Launch Save Struggling Nio Stock? appeared first on InvestorPlace.

  • New Mexican Tariffs Could Majorly Disrupt Ford Stock — And All of U.S. Auto
    InvestorPlace19 days ago

    New Mexican Tariffs Could Majorly Disrupt Ford Stock — And All of U.S. Auto

    Ford (NYSE:F) shares dove in Friday trading following President Trump's surprise announcement of new tariffs on Mexican goods. Though Ford lacks the large Mexican presence of its archrival GM (NYSE:GM), concerns about supply chains rattled investors in Ford stock and its peers.Source: Jens Mayer via Flickr (Modified)While this selloff will probably become a buying opportunity, traders should hold off in the near-term as the impact becomes fully understood. Tariffs Could Directly Affect Electric Car ProductionIn an unexpected move, President Trump slapped a 5% tariff on all goods coming from Mexico. Tariffs will begin on June 10 and will gradually increase until Mexico has done enough in the eyes of the Trump Administration to curb illegal immigration. News of these duties sent the market sharply lower, hitting Ford stock and auto stocks across the board.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Heavily Shorted Stocks to Sell -- Because the Bears Are Right For the first four months of 2019, Ford produced 20,234 vehicles in Mexico. This represents a 14.7% decline in Mexican production from the same quarter last year. That also makes up only a small percentage of production as Ford sold 590,249 vehicles in North America in the first three months of the year.Nonetheless, this could cause issues for Ford stock as the company had expected to produce more cars in Mexico, even as it cut overall production. The company has planned to build its battery-electric crossover vehicle at its Cuautitlan, Mexico plant. This means a change from its original plan to produce the car at its Flat Rock, Michigan facility.Moreover, Ford has lagged both long-time rivals and upstarts such as Tesla (NASDAQ:TSLA) and Nio (NYSE:NIO) in electric vehicle production. Now, with that production happening in a country directly targeted by tariffs, worries become magnified. Most of the Concern Involves the Supply ChainHowever, the more significant concern might come from integrated supply chains. According to Liz Ann Sanders of Charles Schwab (NYSE:SCHW), two-thirds of the imports between the U.S. and Mexico take place intra-company. Goods can also cross the border multiple times. Country wide, the Wilson Center says that 4.9 million U.S. jobs and more than $500 billion in economic activity depend on trade with Mexico.From an investor standpoint, traders now have to wonder if Ford stock can continue to recover as many had predicted. Even after the Friday swoon, Ford stock has risen by more than 25% since late December. However, that comes after the F stock lost nearly half of its value over a five-year period. That brought its multiple to just under seven times forward earnings. Given that low P/E ratio, I see it retesting the December lows only in a worst case scenario. Still, supply chain concerns may limit the upside for now.In the meantime, long-time holders of Ford stock can take solace in the dividend. The Ford stock price has fallen back below $9.50 per share. With the annual payout currently at 60 cents per share, this takes the yield to around 6.4%. Yes, it fell from last year's 73 cents per share. However, with the yield at more than triple the S&P 500 average, that still can bring investors substantial cash flows. The Bottom Line on Ford StockThe tariff on Mexican imports will delay but probably not deny the long-awaited recovery of Ford stock.In the near term, new tariffs on goods from Mexico bring a great deal of uncertainty for Ford. The status of Ford's push into electric vehicles comes into question. More importantly, owners of Ford stock now have to wonder what effects the duties will have on Ford's supply chain.Investors who have seen Ford stock slide for five years will face further delays in the stock's recovery. With the 6.4% dividend yield, long-term holders of Ford stock should probably ride out the trade dispute. Even if the company cuts the payout again next year, it will remain well above S&P averages.Prospective buyers face a more uncertain path. Six months from now, we do not know if this episode will be in the distant past or if consumers will face even higher tariffs on Mexican goods. * 7 Stocks to Buy for Monster Growth Admittedly, the low multiple, the payout, and the recent history of Ford stock lessen the risk of buying now. However, until traders know more about the effects of tariffs on Ford's supply chain, new buyers should probably wait.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) * 7 Stocks to Buy for Monster Growth * Ranking the Top 10 Stock Buybacks of Last Year * 5 Stocks Under $10 With Big Upside Potential Compare Brokers The post New Mexican Tariffs Could Majorly Disrupt Ford Stock -- And All of U.S. Auto appeared first on InvestorPlace.

  • Foreign Automotive Industry Outlook: Treading a Rough Road
    Zacks19 days ago

    Foreign Automotive Industry Outlook: Treading a Rough Road

    Foreign Automotive Industry Outlook: Treading a Rough Road