5 Reasons Why Investing in Nio Stock Makes No Sense
$NIO Inc (NIO.US)$ $Tesla (TSLA.US)$ $BYD COMPANY (01211.HK)$ $XPeng (XPEV.US)$ NIO remains unprofitable, burning cash, and facing rising geopolitical risks, making it hard to achieve a turnaround without outside financing. The article revealed 5 reasons why investing in Nio stock makes no sense:
1) Despite revenue growth, Nio has seen little improvement in its bottom line. In Q2, the company reported a net loss of $705.4 million, with cash reserves falling from $5.32 billion to $4.99 billion quarter-over-quarter.
2) Considering that profitability is expected only in 2027, the company will continue to lose money. However, given the weak margins and constant downward revisions, there’s a possibility that NIO will not even break even in 2027.
3) Nio would have already gone bankrupt if not for “constant liquidity injections” from external investors. While this funding has kept the company afloat, it dilutes the value of existing shares and makes Nio a less appealing investment.
4) On top of all these issues, rising geopolitical threats are making the landscape for Chinese EV makers even more difficult. Both the U.S. and European Union are raising barriers to enter their markets, while the Chinese government has also decided to prevent its carmakers from exporting advanced EV tech.
5) These pressures will force NIO to compete in the increasingly crowded Chinese domestic market, placing another large obstacle on the road.
My Take: Someone said that Nio sales in Europe have "improved" and the new tariff imposed in the EU will not affect overseas sales without giving convincing data and sources of information. We should do due diligence and verify about such remarks.
Source:
$BYD COMPANY (01211.HK)$ $BYD Co. (BYDDF.US)$ $S&P 500 Index (.SPX.US)$ $Nasdaq Composite Index (.IXIC.US)$ $Tesla (TSLA.US)$ $VOLKSWAGEN A G (VWAGY.US)$ $NIO Inc (NIO.US)$ $Li Auto (LI.US)$ $XPeng (XPEV.US)$ $General Motors (GM.US)$ $Ford Motor (F.US)$ $Rivian Automotive (RIVN.US)$ $MERCEDES-BENZ GROUP AG (MBGAF.US)$ $TOYOTA MOTOR CORP (TOYOF.US)$ $GEELY AUTO (00175.HK)$ $Stellantis NV (STLA.US)$
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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安安稳稳过日子 : Is this article for entertainment? Hahaha
Cui Nyonya Kueh : Well said
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74216494 : Article is only confirming, what I am permanently writing: HAPPY SHORTing NIO. The stupid management decisions work for me. Although, the core tech of NIO is great.
ZnWC OP Dragon Fish : You should change your mindset about accepting opposing postings. Giving threatening remarks has no place here as Moomoo community guidelines said we can share different opinion in a friendly environment.
The article is written by a professional analyst with 5-stars rating and is read by thousands (possibly even million) in the social media.
Dragon Fish 安安稳稳过日子 : Ya lah. They want to short Nio down below 5.00 but Nio Supporters die die defending the level so they keep trying to write articles like that hoping Nio Supporters read it and give up the 5.00 level so they can declare winning the war.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Moon fairy 大炮仙 ❤ Dragon Fish :
ZnWC OP 安安稳稳过日子 : Given that the writer is an experienced investor, the article is reliable. I think your posts look more like child play.
Dragon Fish : To Nio supporters the 5stars writer is only 1 star.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
ZnWC OP Dragon Fish : Everyone can compare and contrast what I have shared. It is useless to harass my followers which can be reported to Moomoo.
ZnWC OP Dragon Fish : Beside giving unfriendly comments to the extent of harassing others, you are just repeating your personal opinion without any substantial evidence and not giving any source of information. All can see for yourselves and compare.
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