News NIO

Should You Buy Nio Stock Now?

NIO has been called The Tesla Killer for years, ever since the Chinese automobile manufacturer, headquartered in Shanghai, close to Tesla Giga Shanghai, launched its NIO EP9 in 2016.

NIO EP9 …

The NIO EP9 is an electric-powered, two-seat sports car. Six EP9s have been sold to NIO investors for £2,500,000 each, and NIO announced that ten additional EP9s will be sold to the general public.

Following the massive capital injection from NIO’s early investor Tencent Holdings and the bailout from Chinese authorities, we believe NIO has enough ammo to keep investors hyped and alive, NIO sales is also rising, and there is surely enough money in the bank.

Nio presently has 3 models in production, the EP9, ES6, and ES8

ES8 NIO.

The NIO ES8 is an all-electric, 7-seater full-sized Sport Utility Vehicle manufactured by NIO. The ES8 was put into production in June 2018 for the Chinese market.

SHOULD YOU BUY NIO STOCK?

NIO’s share-price surge began in earnest after it reported its second-quarter sales results early in July. The company said that its vehicle sales in the quarter had nearly tripled from the year-ago period (up 191% to 10,331, to be precise), as the coronavirus pandemic receded and NIO was able to take advantage of the expanded sales infrastructure it put in place last year. – fool.com

The stock has been up over 250% past 3 months. NIO is taking advantage of the curent EV wave that is pushing all EV related Stocks higher. Further, China’s intense push for EV vehicles is a major booster for NIO.

According to ZACK, while the company has secured funding and managed to stay afloat, its balance sheet is quite weak. Reverse leverage and high debt of the firm in comparison with cash and cash equivalents play spoilsport. The firm should ensure prudent utilization of funds via focusing on expansion strategies and the launch of vehicles to boost long-term prospects.

NIO is expected to report its Q2 earnings result sometime in the middle of next month. Investors are surely hyped and pumped and hoping for a positive report.

Feel free to use the comment section to share your opinion with us. Are you a NIO stock buyer?.

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