Hiroshi Watanabe
Electric vehicle start-up NIO (NYSE:NIO)(OTCPK:NIOIF) missed estimates for its first fiscal quarter on Tuesday, despite strong demand for its EVs and a ramp in ONVO deliveries, which include the popular L60 SUV. NIO is one of the
NIO: Don't Give Up Just Yet
Summary
- NIO missed Q1 estimates, reported significantly higher losses and a drop in vehicle margins despite strong delivery growth and success with its ONVO brand.
- ONVO's rapid ramp-up is driving delivery growth, but persistent high R&D and marketing expenses keep profitability out of reach for now.
- NIO announced an aggressive push into new markets in Europe in order to accelerate its delivery momentum.
- Shares remain deeply undervalued, trading at a 46% discount to the industry group P/S averages, offering significant revaluation potential if losses are reduced.
- I remain optimistic about NIO's long-term upside, continuing to buy dips, but acknowledge intensifying competition and ongoing margin pressures as key risks.
I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of NIO, LI, BYDDF either through stock ownership, options, or other derivatives. 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.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.