NIO Inc. is one of the largest electric car companies in China. NIO was founded in 2014 as a small startup based in Shanghai. It is supported by the Chinese government and large investors, including Lenovo, Tencent, Sequoia. NIO has also established itself well as a manufacturer of electric race cars. Its cars compete in the Formula E championship.
What affects the value of NIO shares? The main factor is the demand for the company's cars. The popularity of electric vehicles is growing every year, and their manufacturers do not have to deal with laws regarding emissions reduction. On the other hand, NIO started out with manufacturing luxury cars that were too expensive for the general public. Its low-cost electric vehicles will help the company get into new markets which may have a positive impact on the NIO rate.
The NIO stock depends on the financial statistics of the company. For some time, the car manufacturer had no profit, the corporation existed on investors' money and government support. Then the company improved its financial performance. That had a positive impact on the NIO stock price.
Traders should follow the news about NIO Inc. and the electric car industry in general. Partnerships (for example, a partnership with Nvidia and adoption of its chips), new technologies (such as high-capacity batteries) and important investments will positively affect the value of NIO. If, however, the company's board announces plans to sell a stake in the business, investors may react with a bearish sentiment, which will lead to a decrease in the NIO stock rate. There's high competition in the industry. Tesla has been in the mass market for a long time, and Musk’s good financial reports could get his company more investments. As a result, the price of NIO might decrease.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
Sell | 4.04 |
Buy | 4.05 |
Sentiment | 100% ▾ |
1-day change | -0.24(-5.61%) |
Earn from the fluctuations of prices and boost your income with LiteFinance!
#AA | N/A | N/A | -0.42 | -1.29% |
#ABBV | N/A | N/A | 8.4 | 4.47% |
#ABT | N/A | N/A | 6.45 | 6.04% |
#ADM | N/A | N/A | -0.71 | -1.15% |
#AMWL | N/A | N/A | -2.03 | -19.77% |
#AXP | N/A | N/A | 6.6 | 2.62% |
#BA | N/A | N/A | -11.02 | -5.98% |
#BABA | N/A | N/A | 4.04 | 5.10% |
#BAC | N/A | N/A | 1.1 | 2.77% |
#BB | N/A | N/A | -0.07 | -2.90% |
#CAT | N/A | N/A | 11.36 | 3.30% |
#CLX | N/A | N/A | 27.22 | 20.76% |
#COTY | N/A | N/A | -0.48 | -4.87% |
#CVX | N/A | N/A | -8.8 | -5.62% |
#DIS | N/A | N/A | -3.11 | -3.33% |
#DVN | N/A | N/A | -1.68 | -3.61% |
#EDU | N/A | N/A | -0.05 | -0.08% |
#F | N/A | N/A | 0.34 | 3.13% |
#FIS | N/A | N/A | 6.07 | 7.95% |
#FTI | N/A | N/A | -2.65 | -8.99% |
#GD | N/A | N/A | 3.23 | 1.09% |
#GE | N/A | N/A | 0.56 | 0.32% |
#GPN | N/A | N/A | 10.02 | 9.94% |
#HD | N/A | N/A | 1.11 | 0.30% |
#HPQ | N/A | N/A | 0.12 | 0.33% |
#IBM | N/A | N/A | 10.16 | 5.29% |
#JNJ | N/A | N/A | 7.63 | 4.82% |
#JPM | N/A | N/A | 14.05 | 6.67% |
#KMI | N/A | N/A | 0.54 | 2.57% |
#KO | N/A | N/A | 5.73 | 8.59% |
#KODK | N/A | N/A | -0.49 | -8.51% |
#LMT | N/A | N/A | 26.68 | 4.93% |
#MA | N/A | N/A | 18.68 | 4.02% |
#MCD | N/A | N/A | 25.11 | 9.53% |
#MLM | N/A | N/A | -55.64 | -9.44% |
#MMM | N/A | N/A | 8.5 | 6.73% |
#MO | N/A | N/A | 4.3 | 8.69% |
#MS | N/A | N/A | 0.79 | 0.77% |
#NIO | N/A | N/A | -0.24 | -5.61% |
#NSC | N/A | N/A | 7.85 | 3.16% |
#OXY | N/A | N/A | -3.23 | -5.37% |
#PFE | N/A | N/A | -1.24 | -4.10% |
#PG | N/A | N/A | 10.45 | 6.49% |
#PM | N/A | N/A | 8 | 6.94% |
#RNG | N/A | N/A | -1.28 | -3.71% |
#RTX | N/A | N/A | 6.62 | 5.67% |
#SLB | N/A | N/A | -3.5 | -7.37% |
#SNOW | N/A | N/A | -13.68 | -10.73% |
#SQ | N/A | N/A | 2.79 | 4.41% |
#STZ | N/A | N/A | -5.06 | -2.06% |
#T | N/A | N/A | 0.74 | 3.86% |
#TAP | N/A | N/A | 1.08 | 2.05% |
#TME | N/A | N/A | -3.5 | -25.18% |
#TOT | N/A | N/A | 1.61 | 2.39% |
#V | N/A | N/A | 11.28 | 4.26% |
#VMC | N/A | N/A | -28.04 | -10.29% |
#VZ | N/A | N/A | 1.46 | 3.62% |
#WMT | N/A | N/A | 8.17 | 11.83% |
#XOM | N/A | N/A | -0.75 | -0.63% |
#NFLX | N/A | N/A | 58.67 | 9.14% |
#NKE | N/A | N/A | N/A | N/A |
Besides designing, developing, manufacturing, and selling smart electric vehicles, NIO Inc. also provides power solutions. Furthermore, it offers repair, maintenance, and bodywork services through service centers (both its own and ones from authorized third parties), as well as statutory, liability, and vehicle damage insurance. The company has courtesy car services, roadside assistance, and data packages. The company’s wide product range is completed with auto financing services. Moreover, it offers a NIO-Certified service for used vehicle inspection, evaluation, acquisition, and sales.
In September 2018, NIO filed for a $1.8 bn initial public offering on the NYSE. Thus, the company’s stock started trading on the New York Stock Exchange as Class A ADR under the #NIO symbol. NIO’s stock is also traded on the Hong Kong Stock Exchange. The stock price is very low. Moreover, the company doesn’t pay dividends. That’s why it’s worth trading its stocks.
Although the company is inefficient at transforming shareholder equity into returns, and the company’s earnings are negative, NIO’s revenue growth is faster than the US auto manufacturers industry and market average. Also, the company has improved its efficiency at generating return on capital.
Aside from Tesla, NIO’s alternatives are Lucid Motors, Faraday Future, and Youxia Motors. When trading NIO, you should be aware of the developments and new products of the company’s competitors. NIO Inc. is a Chinese company that suffers a higher degree of competition in the American market.
Institutional investors own nearly 40% of the company’s shares. It’s one of the lowest levels of stock holdings compared to other companies in the motor vehicles industry. The key stockholders are BlackRock Fund Advisors, the Vanguard Group, Inc., and SSgA Funds Management, Inc.
The company’s shares are included in a few indices, such as American indices ARCA China and NYSE Composite, as well as world index MSCI EM.