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Is NIO Stock Likely To Grow In The Next Year? Consider Both Deliveries And Profitability

Apr. 21, 2023 10:30 AM ETNIO Inc. (NIO)4 Comments


  • NIO's deliveries are projected to grow at a much faster rate in 2023 on the back of new vehicle model launches.
  • But NIO's actual Q4 2023 vehicle margin might fall short of the company's management guidance due to higher than expected lithium carbonate prices.
  • NIO stock's strong 2023 deliveries growth isn't sufficient to justify a positive re-rating of its shares, as I think that NIO's actual profit margins could be a disappointment for investors.
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NIO logo and the Nio"s user center, NIO House

Andy Feng

Elevator Pitch

I have a Hold rating awarded to NIO Inc.'s (NYSE:NIO) [9866:HK] shares.

With my prior January 5, 2023 write-up for NIO, I reviewed the company's deliveries data for the final quarter of the previous year. The focus

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The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

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Comments (4)

Moreover the Musk zealots are trying to kill Tesla's competition. So it is a question of who folds earlier.
Why do nearly all of these articles fail to mention cash burn and balance sheet concerns? The current ratio and working capital are flashing RED. NIO won't last the summer without another capital raise, IMHO. NIO management is fiddling while their cash burns.
The issue remains that they are selling luxury vehicles in China. The need to focus on making a cheaper car. Is it to late? Not sure. Fair value is around $7.45.
China is switching to sodium ions for batteries. Ev margins will increase.
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