Investors should steer clear of Nio stock - Motley Fool
Someone just posted an article about NIO new exaggerated sales target of 20,000 units per month. I totally agree with Motly Fool's comment about NIO :
NIO probably won't command a higher valuation until its shipments stabilize, its vehicle margins improve, and it meaningfully narrows its operating losses. Simply put, investors should steer clear of Nio and stick with other growth stocks instead.
NIO probably won't command a higher valuation until its shipments stabilize, its vehicle margins improve, and it meaningfully narrows its operating losses. Simply put, investors should steer clear of Nio and stick with other growth stocks instead.
In May, NIO delivered only 6,155 all-electric cars (globally) a slight decrease compared to both April (6,658) and the previous year (7,024, down 12 percent).
Quote:
Nio posted its first-quarter earnings report on June 9 - maker's revenue rose 8% year over year to a U.S. equivalent of $1.55 billion, which missed analysts' estimates by $80 million. Its adjusted net loss more than tripled to $604 million...
A lot of those headwinds waned this year, but Nio's deliveries still declined 22% sequentially in the first quarter. For the second quarter, it expects its deliveries to decline sequentially again to 23,500 to 25,000 vehicles, and for its total revenue to decline 9% to 15% year over year.
Another issue is its vehicle margin, which is being squeezed by the pricing war in China's EV market. That metric shrank from 20.1% in 2021 to 13.7% in 2022, and then dropped year over year from 18.1% to 5.1% in the first quarter of 2023.
Quote:
Nio posted its first-quarter earnings report on June 9 - maker's revenue rose 8% year over year to a U.S. equivalent of $1.55 billion, which missed analysts' estimates by $80 million. Its adjusted net loss more than tripled to $604 million...
A lot of those headwinds waned this year, but Nio's deliveries still declined 22% sequentially in the first quarter. For the second quarter, it expects its deliveries to decline sequentially again to 23,500 to 25,000 vehicles, and for its total revenue to decline 9% to 15% year over year.
Another issue is its vehicle margin, which is being squeezed by the pricing war in China's EV market. That metric shrank from 20.1% in 2021 to 13.7% in 2022, and then dropped year over year from 18.1% to 5.1% in the first quarter of 2023.
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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28282828 : I think nio is not worth the risk as well. Too many problems ..
71529569 : this is why he is just a analyst！
102095561 : nio over expansion and make many big mistake so created many huge burning machine .Europe aslp big cash burn .swap ,nio house and nio phone all cash burning .panic now as rival like byd li auto all eat up nio premium segment.buyer Also abandon nio and buy li auto they dnt need nio phone ,lidar or swap .so all heavy investment by nio is useless as no buyer need it
71529569 : no pay no gain. if you cant take the risk then just why are you still here？
澳洲首负 : The more he says he's bad, the more he has to buy it; otherwise, all the money will be earned by shorting.
ZnWCOP 澳洲首负: The article suggested buy other growth stocks.
ZnWCOP 71529569: The article suggested buying other growth stock.
CᖇYᑌI᙭ 71529569: Just a short-er.
geda : The technical analysis still has a role, and I'm only going to get into the 200 Tesla because of a metric like ema macd. And greatly reduce the chance of the duvet cover in the opposite direction of the market, indicators will tell you to run a technical analysis or have a certain role, I was because ema macd and other indicators will be in 200 Tesla. And greatly reduce the chance of the duvet cover in the opposite direction, the indicator will tell you to run
ZnWCOP geda: Technical Analysis (TA) is a useful tool but someone try to use it to spread FUD. I wrote this post to highlight the limitations of TA. I learned from a teacher that you need to use more than one TA indicators and macro factors to verify if the forecast is accurate.
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