NIO: Weighing The Good And Bad Heading Into Q1 2025
Summary
- NIO remains a compelling value Buy as we head into the FQ1'25 earnings call, thanks to its overly discounted valuations compared to historical trends and its peers.
- Our optimism arises from the growing sales of its well diversified EV platforms across the budget/ mass-market/ premium segments and its battery swap strategy.
- These have triggered NIO's expanding vehicle/ gross profit margins, with H2'25 likely to bring forth improved numbers after the promotional events normalize.
- Even so, NIO's investment thesis continues to carry risks, attributed to the ongoing cash burn and growing short interest volumes on a YoY basis.
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