MASSIVE NIO News - Should You Buy $45 Or Sell? - NIO Stock Update & Price Target Upgrade Prediction

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So NIO is down around 4% today which does seem scary but if you managed to survive the -15% dip on wednesday before it turned to an almost +6% that day, this is nothing compared to that.

I really don’t think these movements have anything to do with NIO as a company but rather uncertainty regarding the valuation of all Electric Vehicle stocks combined with the Delisting panic.

Pretty much all EV stocks are down right now. And not only the chinese ones like XPeng, Li Auto and NIO, but even Hyliion, Nikola and Workhorse are down this week.

The only exception here being Tesla really which has gotten a big boost from the inclusion to the SP500 and now very recently, a price target increase from Goldman Sachs.

So keep in mind here that in the short term, the movements of a stock do not REFLECT ITS ACTUAL VALUE and that is why I think that despite NIO being down right now, I THINK THEIR FUNDAMENTALS HAVE NEVER BEEN STRONGER. So before I GET INTO the recent developments in the legislation to possibly DELIST chinese stocks and what share price I see for NIO in the future, I will be explaining just why I think the NIO share price has tons and tons of upside!

So Despite Tesla right now obviously being the global leader in the Electric vehicle industry right now, NIO is emerging fast and has sooo much going for it.

First of all the Chinese EV market is on an absolute roll and their manufacturers stand for 50% of ALL THE WORLDWIDE EV DELIVERIES. The EV companies in China have support a bunch of government policies with subsidies and a strong supply chain network.

Analysts and experts in the industry are very optimistic in China's ability to transition into green and renewable energy with estimates that China’s EV penetration will grow FIVE FOLD by 2025. And I would definitely argue that NIO is very well placed to secure a large part of those market shares in this growing industry.

And time after time NIO has proven that they are on track to become a well established, long lasting company in China. Quite ironically we saw NIO again having record deliveries for November ON THE SAME day where they dropped the most.

This last quarter NIO has reported 666 million dollars in revenue which was above the consensus estimates of 628 million dollars. And as if this wasn't enough the profit margin on the vehicles was all the way up to 14.5% compared to the same quarter a year ago. Now it will be interesting to see whether NIO manages to reach their Q4 goals of 16500 to 17 000 vehicles but regardless I think their growth has been astonishing.

And to add to this NIO has a very unique Battery swapping technology where any EV user can QUICKLY charge their batteries and save their time. In October it was announced that NIO completed more than 1 million battery swaps and has been very well received

What is also awesome about this service is that it can work quite independently of NIO’s car related operations. It diversifies the company and opens the door to many opportunities that other EV companies might not have.

Lastly I want to point out just how much THE CHINESE GOVERNMENT is supporting NIO. Now how ethical or FAIR this is can definitely be discussed but THE TRUTH IS that 24% of the company is owned by Hefei investor group, so basically the government of China and it is a no brainer that China will do their absolute best to create an environment where NIO can thrive.
For example in the beginning of 2020 when NIO was RUNNING LOW ON CASH and was on the bring of filing for bankruptcy they managed to get ONE BILLION dollars in support from the government and suddenly these issues were no more.

And I think China’s interest to have a successful EV company goes beyond just the economics. It would be something to be proud of and it would give the world the perception that CHINA is on the forefront on sustainable, yet highly advanced technology and that is definitely something to be proud of.

But with this said NIO stock is still down today along with most Chinese Electric Vehicle companies and I do think it is mainly just a consolidation where short term investors take profit and the longer term ones can slowly start buying more shares at lower prices. But the fears of NIO getting delisted from the New York Stock Exchange have likely contributed to it. So let’s go through this before I talk about my price target for NIO.

First of all the bill has been passed at this point so there is A COUNTDOWN of a couple years where NIO will get listed IF CHINA doesn’t come to an agreement with the US. Keep in mind guys, NIO’s auditors are registered among the approved auditors, we have always known this. The issue is rather that Chinese authorities have made policies that IMPEDE the Public Company Accounting Oversight Board, or PCAOB to oversee thes registered auditing firm in China.

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