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Could Buying Nio Stock Today Set You Up for Life?

New (Nyse: nio) It has been a volatile stock since the public subscription in 2018. Chinese car maker for electric cars on the basis of $ 6.26 per share, and it rose ten times to a record level of $ 62.84 during the purchase madness in MEME shares in February 2021.

However, to write these lines, NIO shares are traded by about $ 5 per share. The Bulls retreated while its delivery operations were calm, its margins decreased, and very slope losses fell. Can you get some stocks from this unpleasant stock without the public subscription price in preparing it for life?

NIO's EVE ConCEpt.
NIO’s EVE ConCEpt. Photo source: NIO.

NIO produces a wide range of electric sedans and SUVs. It distinguishes itself from its competitors with its switching batteries, which can be quickly replaced in its battery exchange stations as a faster alternative to the traditional hewings.

NIO delivered its first cars in 2018, and the annual delivery operations increased by 11 times from 2019 to 2024. But after more than doubling the annual delivery operations in 2020 and 2021, the delivery operations slowed in 2022 and 2023 where it was struggling with the supply chain restrictions, the most stringent competition, and Chinese economic slow.

metric

2019

2020

2021

2022

2023

2024

Delivery

20,565

43,728

91,429

122,486

160,038

221,970

Growth (Yue)

81 %

113 %

109 %

34 %

31 %

39 %

Data source: NIO. Yue = year on an annual basis.

NIO’s annual vehicle margin, which reached a standard level of 20.2 % in 2021, also reduced to 13.7 % in 2022 and 9.5 % in 2023 with pricing force declined. Its annual loss is more than four years from 2021 to 2023. All these challenges – along with commercial tensions and high interest rates – led to the removal of bulls.

Two years after slowing growth, NIO growth accelerated in delivery operations again in 2024. Its business stabilized with the growth of its share in the market and expanded in Europe.

This recovery was driven by its stable sales from ET Sedans, ES Suvs, and EC Rubsoves, as well Timing‘s (Nasdaq: tsla) The Y, but it starts from only 149,900 yuan ($ 20,646). It also continues to expand throughout Europe even as it faces a higher tariff on Chinese EVS throughout the region.

But despite this pressure, the margins of the quarterly vehicles in NIO settled in 2024, increasing 9.2 % in the first quarter to 12.2 % in the second quarter and 13.1 % in the third quarter. It is expected that this number will rise again to 15 % when his profit report is published in the fourth quarter on March 21. It attributes that the recovery to the costs of low materials and its increasing sales of premium vehicles (including Et7 Extrication Sedan) in China, which greatly compensates for the average selling prices.

2025-03-16 22:54:00

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