NIO: Beijing Goes All In

Summary

• NIO remains unprofitable, burning cash, and facing rising geopolitical risks, making it hard to achieve a turnaround without outside financing.
• Despite rising revenues and vehicle deliveries, NIO's profitability is unlikely before 2027.
• Geopolitical issues and industry price wars hinder NIO's expansion in the U.S. and Europe, further complicating its path to profitability.
• NIO's recent stock rebound is driven by external factors like China's new stimulus package, but long-term prospects remain grim.

Victor Golmer

NIO (NYSE:NIO) continues to drain liquidity and dilute its shareholders as its business remains unprofitable and is unlikely to break even anytime soon. Despite growing its sales, the continuous burning of cash resources coupled with the rising geopolitical

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