NIO: Red Flags Everywhere

Aug. 12, 2024 7:03 AM ETNIO Inc. (NIO) Stock, NIOIF StockNIO, NIOIF27 Comments
Dair Sansyzbayev
8.92K Followers
(9min)

Summary

  • NIO's stock has lost over 70% of its value in the last twelve months, with deteriorating fundamentals and market share.
  • The company continues to burn cash and is expected to raise new funds, leading to increasing leverage and share count.
  • Valuation analysis suggests NIO stock is deeply undervalued, but the discount appears justified given the numerous red flags.
NIO logo and the Nio"s user center, NIO House

Andy Feng

Investment thesis

My previous bearish thesis about NIO's (NYSE:NIO) stock aged well, as the stock lost around 9% of its value since late April. I think that there are no reasons to be less pessimistic about NIO as the company's fundamentals

This article was written by

8.92K Followers
I am a highly experienced Chief Financial Officer (CFO) with a strong background in the oilfield and real estate industries. With over a decade of experience in finance, I have led numerous complex due diligence efforts and M&A transactions, both domestically and internationally.In recent years, I have developed a keen interest in equity research and analysis of public companies. This interest has led me to render equity research services for a Dubai-based family office with over $20 million in assets under management (AUM). My expertise in finance allows me to provide valuable insights and recommendations to clients seeking to make informed investment decisions.I pride myself on my ability to analyze financial statements, evaluate market trends, and identify key drivers of growth in different industries. I am passionate about staying up-to-date on the latest developments and trends in the equity research industry, and I am always seeking to enhance my skills and knowledge through continuing education and professional development.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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