An analysis of NIO stock | Should you BUY $NIO?
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 Published On Jul 18, 2020

Should you BUY NIO stock? This complete analysis of $NIO (NYSE:NIO) attempts to provide some insight into that very question, and whether the massive price increase from under $2 to nearly $15 between September 2019 and July 2020 was justified!

NIO is a relatively young company within the Electric Vehicle segment, looking to specialise as a manufacturer of luxury SUVs and sedans. It is actually very different to Nikola Motor (NKLA) & Hyliion (SHLL), who both aim to compete in the class 8 truck space, and even Tesla (TSLA) since it competes in a variety of segments apart from just passenger vehicles. NIO currently only operates and sells in China, but will look to expand globally once it has established its brand and reputation as trustworthy EV competitor.

There are several other aspects which separate NIO from the field. Firstly, it does not promote battery charging, but rather has implemented a network of battery swap stations throughout the major Chinese cities to facilitate the exchanges. Secondly, it is purposely undercutting competitors with low pricing, to make it more difficult for other players to charge high premiums. And lastly, it integrates an Artificial Intelligence unit into the dashboard of every vehicle called NOMI, which helps drivers to perform all sorts of tasks that are now becoming ubiquitous amongst other virtual assistants.

NIO currently manufactures 2 SUV models - the larger ES8 and the more compact ES6 - but will soon bring to market the crossover SUV it dubs the EC6, which will compete directly against the Tesla Model Y.

Although NIO is currently unprofitable and losing hundreds of millions of dollars each quarter, it has secured major FUNDING deals with both Hefei City Contruction and six domestic banks to ensure it will not go bankrupt in the near future! With a near infinite supply of cash, it will look to focus on simply producing and selling vehicles and grow its appeal to the masses.

This video aims to provide greater detail surrounding the fundamentals of NIO and ultimately, whether or not the stock is worthy of a buy given it has already run up so much since the turn of 2020.

Timestamps
0:00 Intro
0:43 What or who is NIO?
1:42 NIO currently only operates in China
2:08 NIO's vehicles cost half of Tesla's
2:45 NIO choose battery swap instead of charging
4:38 NOMI is NIO's artificial intelligence to help drivers
5:42 A retrospective on NIO's IPO
7:36 Plotting the delivery numbers for each quarter
8:12 The net losses for NIO keep racking up
10:36 NIO completes TWO massive funding deals to keep it afloat
11:48 A look at all of NIO's funding rounds
12:02 An interesting investor in Baillie Gifford
12:41 Tencent's investments into NIO
13:20 NIO announces record deliveries for Q2 2020
14:18 NIO is a speculative investment
14:47 NIO's Price to Sales (PS) Ratio compared to Tesla's
15:14 The 9 trillion dollar global automotive industry
15:42 NIO is at least producing vehicles unlike Nikola
16:14 Closing thoughts on NIO
17:33 Outro

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