NIO ES7 Gives a Fresh Reason to Invest in the Electric Vehicle Stock

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NIO stock - NIO ES7 Gives a Fresh Reason to Invest in the Electric Vehicle Stock

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It has been a roller coaster ride for NIO (NYSE:NIO) stock this year. Shares of the Chinese electric vehicle company have been down 64% in the last six months. However, there are indications that the worst could be behind the company, so NIO stock deserves another look.

Nio has hinted at becoming more affordable and able to be enjoyed by a wider audience. In the Chinese market, where margins are razor-thin and competition is fierce, the company needs to compete with rivals in every segment.

Nio is an ambitious company that has been looking at moving into lower- and mid-priced vehicles. Management has said they want to create a new brand to help achieve this end as soon as possible. The Chinese car company has announced that local authorities and the company that produces vehicles in Hefei have finally reached an agreement over a plan to build an extension to make these affordable cars.

Overall, the company expects to release three new models this year. One of the most exciting announcements is the Nio ES7. This is the third Nio SUV, which is seriously exciting because the incredible design and features match the other NIO releases. It’s right in the middle of its premiere ES6 and ES8 siblings.

It is based on NIO’s second-generation NT2.0 technology platform. The car’s launch will occur in September, barring any supply chain issues.

Also, we hear things on the regulatory front. Nio has announced that it will be going to the Singapore public markets on May 20, which will be equivalent to ADSs on the U.S. exchanges. That brings much-needed clarity for investors who were afraid regarding the company’s future.

NIO Stock Is a Buy

China is the world’s largest electric vehicle market globally, and within that market, NIO is one of the bigger players. Therefore, investors cannot afford to ignore this one.

However, NIO stock is under tremendous pressure due to certain external factors. There are fears that some Chinese companies could be delisted because they failed to meet U.S. accounting standards. The list includes Nio. However, the company’s listing in Singapore will solve several issues.

Plus, the EV automaker is launching new models aggressively, which will help reignite sales in its home market. At the same time, NIO is expanding to other countries like Germany, the Netherlands, Sweden and Denmark. It already has a presence in Norway.

This year, the company will bounce back, making the stock more interesting to investors.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/05/nio-es7-gives-a-fresh-reason-to-invest-in-the-electric-vehicle-stock/.

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