Nio (NYSE:NIO) stock presents a real and rare opportunity here. Down more than 30% this month and nearly 50% year-to-date, Nio is at a discount you don’t want to miss.
The electric vehicle industry has suffered since the start of 2022 as the market has shown a lot of skepticism toward EV stocks.
The industry may have slowed, but many countries still are determined to turn the EV dream into a reality. The problem is, it is going to take time.
Price competition and a proliferation of models is just more evidence that EV makers are trying to make the most of the situation. Nio has what it takes to stay relevant here.
This is not the first time the stock has tumbled, but these are the lowest prices we’ve seen on Nio stock in more than a year. What was once trading for $6 hit $55 in 2021. This year, though, has been tougher than past years. Nio trades at just under $18 today.
I do not think it is time to write off NIO stock just yet. There are many catalysts working in favor of the company and there is a solid chance that the stock rebounds into the $30 range.
Nio recently announced that it will begin trading on the Hong Kong stock exchange. This move could reduce the company’s risk to some extent.
Chinese stocks have suffered after the regulatory clampdowns by Beijing posing a risk of delisting from the U.S. markets. With the secondary listing in Hong Kong, Nio will be able to reduce that risk. Nio is also planning a listing on the Singapore stock exchange.
A Closer Look at NIO Stock
Nio reported February delivery numbers recently announcing a 9.9% increase year over year. It delivered 6,131 vehicles in the month and sales for the first two months of the year were up by 23% as compared to the same period last year.
Nio delivered 5,578 vehicles in February 2021. The company will report the fourth-quarter results later this month, and we will get an idea about the delivery projections.
Nio is already working on increasing the production capacity, and we might get to see the results this year. It will also start ET7 deliveries by the end of this month.
The company is soon to enter the mass market with a new product and expand across the European markets. It looks as if 2022 could be a big year for Nio. The company could become one of the most valued automakers in the industry.
Despite the rising competition and supply chain issues, Nio is ready for a ride this year.
The Bottom Line on NIO Stock
Nio has solid fundamentals and my opinion remains bullish. Despite the pandemic, supply chain issues and macroeconomic concerns, Nio is standing tall.
Do not judge the company based on the recent delivery numbers or investor sentiment. Nio is a strong player in the EV industry with a lot planned for the year.
Besides the European expansion, Nio could also get a listing on the Singapore stock exchange and this might push the stock higher, a move that should help settle nervous investors.
Investors will be able to get an insight into the numbers and the projections for this quarter when the company reports the results. Nio is a buy ahead of fourth-quarter results.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.