Tesla vs. NIO Stock: Which is the Better Buy?
The article revealed that Tesla is a safer stock to buy compared to NIO. The advantage of NIO stock is it is cheaper but the biggest problem is the EV company has been losing money.
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Overall, Tesla appears to be a safer bet than NIO right now, particularly because Tesla is profitable. However, NIO stock can offer a greater reward (albeit with more risk) due to its low price.
NIO Stock Analysis
Founded in 2014, NIO has scaled up production more rapidly than Tesla, delivering over 90,000 vehicles in 2021, just its seventh full year. Analysts expect its stock to go up in price, and that has some investors buying up shares. But it isn’t all positive for the Shanghai-based electric vehicle maker. The biggest concern is that NIO has been losing money. In Q1 2021, its net income was negative ¥4.87 billion, the equivalent of a $768 million loss in a single quarter.
Founded in 2014, NIO has scaled up production more rapidly than Tesla, delivering over 90,000 vehicles in 2021, just its seventh full year. Analysts expect its stock to go up in price, and that has some investors buying up shares. But it isn’t all positive for the Shanghai-based electric vehicle maker. The biggest concern is that NIO has been losing money. In Q1 2021, its net income was negative ¥4.87 billion, the equivalent of a $768 million loss in a single quarter.
Tesla Stock Analysis
For American investors, Tesla doesn’t need as much introduction. As mentioned, Tesla has been consistently profitable after losing money for years. In fact, for Q4 2021, it reported a profit of $2.32 billion, which is up more than 750% year-over-year (YOY). This was also its second quarter in a row with a double-digit net profit. While its P/E ratio remains high, it has been dropping every quarter.
Like NIO stock, though, Tesla stock is seen as overvalued. Likewise, investor sentiment is negative. Forecasts also project a median increase of greater than 30% in Tesla’s stock price. While that seems modest compared to NIO, that would be an increase of more than $200 in Tesla’s share price.
Is NIO a Good Buy?
When evaluating Tesla vs. NIO stock, NIO can be a good buy. However, it depends on your strategy. As noted previously, Tesla is likely a safer buy as it has (finally) shown it can consistently turn a profit, something NIO has yet to do.
For American investors, Tesla doesn’t need as much introduction. As mentioned, Tesla has been consistently profitable after losing money for years. In fact, for Q4 2021, it reported a profit of $2.32 billion, which is up more than 750% year-over-year (YOY). This was also its second quarter in a row with a double-digit net profit. While its P/E ratio remains high, it has been dropping every quarter.
Like NIO stock, though, Tesla stock is seen as overvalued. Likewise, investor sentiment is negative. Forecasts also project a median increase of greater than 30% in Tesla’s stock price. While that seems modest compared to NIO, that would be an increase of more than $200 in Tesla’s share price.
Is NIO a Good Buy?
When evaluating Tesla vs. NIO stock, NIO can be a good buy. However, it depends on your strategy. As noted previously, Tesla is likely a safer buy as it has (finally) shown it can consistently turn a profit, something NIO has yet to do.
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$BYD COMPANY(01211.HK$ $BYD Co.(BYDDF.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Tesla(TSLA.US$ $VOLKSWAGEN A G(VWAGY.US$ $NIO Inc(NIO.US$ $Li Auto(LI.US$ $XPeng(XPEV.US$ $General Motors(GM.US$ $Ford Motor(F.US$ $Rivian Automotive(RIVN.US$ $MERCEDES-BENZ GROUP AG(MBGAF.US$ $TOYOTA MOTOR CORP(TOYOF.US$ $GEELY AUTO(00175.HK$ $Lucid Group(LCID.US$ $Stellantis NV(STLA.US$
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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ZnWCOP : To be fair, the article did suggest that NIO can be a good buy but it depends on your strategy.
Cashcowmooo : I think this was posted in 2015 and again 2016
I M POSSIBLE : when tesla started they were losing money too. long term investment will see results.
ZnWCOP Cashcowmooo: The article is posted on 14 July 2023.
生生世世生生世世 : Are there any comparisons of companies that haven't made a profit yet