Why Nio is a viable investment
It has been a spectacular year for Nio (NYSE: NIO) stock. An increase in the number of investors has consequently seen a 1,400% increase in shares since the turn of the year. While China has seen its fair share of fraud cases over the years, Nio has grown in stature as company size doesn’t influence fraud. These are the ways to understand how legitimate their stocks are.
- Underlying economic strength
A thorough examination of a company will give you an insight into its activities. A deceptive company will skip numbers to deceive investigators, making it seem like they have customers. Tesla’s (NASDAQ: TSLA) Model 3 sales in China have remained somewhat flat since May, but Chinese rivals XPeng (NYSE: XPEV) and Li Auto (NASDAQ: LI) saw 165% and 31% quarter- over-quarter growth rates in the same period. The central Chinese government doesn’t publish vehicle registration statistics, rather state-sponsored organizations report car sales, and the EVs
market saw an 11% decrease in 2020. So, Nio could be worth the hassle but satisfy your curiosity before investing.
- Non-Standard Metrics
Another way companies manipulate investors is through unconventional metrics. There are mixed results when it comes to using metrics. NIO publishes its GAAP figures, including sales, margins, and profits, and focuses on vehicle deliveries which are an unusual metric for investors. NIO delivers vehicles before payment, but Tesla does otherwise. There can be forward sales in the process, so be on the lookout.
Before investing, make sure you make your decisions based on enough data. Trust your gut feelings. When you do not feel right, don’t invest. Do not rely only on the face value of profit- making, although an empty store of a Company should be a cue to stay away.
4 things you do not know about Nio?
Nio got introduced to the American market in September 2018 garnering over $1 billion in revenue. Firstly as a traded company, it traded as high as $6.93 for a reasonable pop. Subsequently, its IPO valuation was sought at three times higher.
- Record breaker
Nio was sitting pretty at the top after its first successful IPO, with a new Guinness World Record when on Sept. 24, 2018, the Nio ES8 ascended the Purog Kangri glacier in Tibet up to an altitude of 18,751 feet, to set a record for the highest altitude achieved in an electric car. This action was a statement of intent from the company as regards altitude and extreme cold.
- Emerging force
Still, in its early stages of development in the competitive EV market, Nio recognized that the lack of available charging stations might become a barrier to success. This has made the company work towards making available various recharging options like making available its Power Home solution by installing charging stations at homes of customers when feasible. However, Nio has over 300,000 public charging stations across China and over 480 fast-charging trucks known as NIO Power Mobile. Battery swapping is also available in over 20 cities to their customers.
- Global venture
The company is making strides to become a global venture as quickly as possible by drawing and using a vast pool of talents available worldwide. Their employee cohort is diverse as some focus primarily on software development. In contrast, others focus on race car management, strategic management, supercar development, and product and brand design.
Catching up with Tesla hasn’t been an easy ride. Companies fighting for supremacy in China’s electric vehicle market specify in different technologies to better their vehicles. They have been supported with subsidies, looser restrictions, and the building out of charging infrastructure. Contact Numberplateclinic for your unique number plate. We have an extensive collection of plate styles, design, and sizes.