NIO: will it rise or fall?
The market uses human psychology rather than hard facts for transactions and because of this movements tends to be more emotional than rational. NIO has a great vision and product but people cannot clearly understand what they are doing and the price is reflecting this. Here my take:
1) Cash burning: First is that Nio is burning its free cashflow which is the most concerning part. As Nio builds a network of batery swapping stations a lot of cash will be burned, this is not cheap.
2) China price wars: I believe this will cool off as Tesla back out of the practice.
3) USA vs. China situation: This do not have me worried. USA is worried that Nio will have to share info back to Chinese Government which is a national security matter and that can be solved if Nio creates a Nio USA division which has happened in the past and the most recent one is TikTok.
4) New brands: I personally like CEO’s POV on regards to the new sub-brands because it leaves NIO as a high end brand while the new brands take over mid and lower tiers of the market. The acceptance and performance of these brands its still to be seen however I do like what is being leaked.
5) New partnerships: Nio do not have a good past with relationships and that have investors concerned. They seem more strategic now and really hope this works.
6) Market manipulation: This can be happening but I’m not here to look for excuses.
I really hope the stock price have found a bottom and will start to bounce up from here. Happy week friends!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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