Nio Stock May Be Priced Like Tesla, but There’s No Good Reason for It

InvestorPlace2021-04-14

It's only a matter of time before reality catches Nio stock. Nio(NYSE:NIO) came public a few years ago with the ambition of becoming the ChineseTesla(NASDAQ:TSLA). It will never achieve that goal, ...

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Comments

我i168
2021-04-15
我i168
Shortist’s short sighted view...dusts not settled, all have chance...while $NIO Inc.(NIO)$has a unique position of BasS
菡萏花开心存心_7116
2021-04-15
菡萏花开心存心_7116
一羣沙雕，蔚來除了讓江淮代工，有半毛錢關係嗎，咋不說蘋果是富士康的，真特麼笑了
- lucky第一:
  那么根本问题，还是没有说，你是看多，还是看空？
- lucky第一:
  那么你是看好蔚来，还是看空呢？
- 菡萏花开心存心_7116:
  我没那水平，看到一群沙雕说蔚来是高端的江淮，我给他们科普一下，蔚来和江淮于苹果和富士康，是一样的。
Lazybird
2021-04-14
Lazybird
Avoiding NIO and XPEV till they hit the 20s...govt supported means they probably won’t go bust but whether they can capture meaningful market share and make sustainable profits are what matterto justify the high stock price.
JimmyChua
2021-04-14
JimmyChua
Backed by china govt though
li0017in
2021-04-14
li0017in
You forgot that NIO is more than a car selling company. It offers battery swap and charging. And NIO has plenty of cost saving opportunity to bring up the bottom line later. It might be more than a TSLA
pianhua
2021-04-14
pianhua
Good

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It will never achieve that goal, yet Nio stock is priced as though the goal is reasonable.I explained why it can’t be Teslalast year. After a massive infusion ofgovernment capital, Nio is mainly a high-end brand forJAC Motors, a government-backed company that makes the carin Hefei. JAC makesa full rangeof vehicles. Think of the Nio as its Cadillac.Yet Nio st","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"NIO":"蔚来"},"translate_title":"蔚来的股票价格可能和Tesla一样，但没有什么好的理由","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NIO":0.9},"content_text":"It's only a matter of time before reality catches Nio stock.\n\nNio(NYSE:NIO) came public a few years ago with the ambition of becoming the ChineseTesla(NASDAQ:TSLA). It will never achieve that goal, yet Nio stock is priced as though the goal is reasonable.\nI explained why it can’t be Teslalast year. After a massive infusion ofgovernment capital, Nio is mainly a high-end brand forJAC Motors, a government-backed company that makes the carin Hefei. JAC makesa full rangeof vehicles. Think of the Nio as its Cadillac.\nYet Nio stock is still priced a lot like Tesla. It will open today at around $37. That’s a market cap of around $62.5 billion for a company that had sales of about $2.4 billion last year. Tesla now has a market cap of $650 billion on 2020 revenue of $31.5 billion. On a price to sales basis, Nio is selling for 26 times revenue, Tesla for 20.6 times revenue.\nIt’s true that, because of its smaller size, Nio is growing faster than Tesla. Much fuss was made recently when it rolled its100,000th vehicle off the JAC line. While the latest ES8 does offer a lower price point than earlier models, it’s nothing likethe EP9 supercaron which Nio made its name. It’snot for the racetrack.\nNio also faces more competition than Tesla ever dreamed of having, even within its niche.XPeng(NASDAQ:XPEV), which unlike Nio has its own factory in Guangzhou, delivered5,102 carsin March, against Nio’s 7,257.\nNio’s totalwas 300% higherthan during the same month in 2020. But both Nio and XPeng were dwarfed by the 16,301 electrics sold byBYD Motors, which started in batteries and is backed byBerkshire Hathaway’s(NYSE:BRK.A) Warren Buffett. BYD also sells hybrid and gas-powered models.\nThe Size Problem and Nio Stock\nSuccessful car manufacturing is about achieving and maintaining scale, necessary to keep costs down.\nNio’s lack of scale means it will have trouble meeting its second-quarter goal of 7,500 cars, due to aglobal chip shortage.\nThere are indications investors are catching on. Nio stock peaked atmore than $60 in February and is now down by more than a third.\nTesla has achieved scale. It is delivering10 times morecars than Nio each month, and it continues to do well in China. Tesla has begun taking bookings for its Model Y,made in Shanghai, which is expected to outsell the Nio.\nYetanalystscontinue to pound the table for Nio stock. The average price target at Tipranks is $62,nearly a 63% gainfrom its present price.\nOur Tezcan Gecgildisagreeswith the consensus. Nio sold fewer than 44,000 cars last year out of 1.3 million EVs sold throughout China.\nThe Bottom Line\nThe Nio is a Cadillac among electric vehicles in China. Not enough Chinese drive Cadillacs.\nMany analysts think of electrics as just gas-powered cars with a different power train. They’re not. They’re going to be increasingly computer-controlled. Many are going to be utility vehicles, like delivery vans. Even big car makers likeGeneral Motors(NYSE:GM) andVolkswagen(OTCMKTS:VLKAY) see transportation becoming a service, rather than remaining a product.\nScale can help today’s electric makers evolve with the market. Tesla has scale. JAC has scale. But Nio is just a small part of JAC. You’re not getting JAC when you buy Nio, you’re just getting the top end of its product line.\nWhen investors realize where the electric car revolution is taking us, there will be a reckoning. JAC may through it, but I don’t think Nio stock will.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":344701152,"gmtCreate":1618441141876,"gmtModify":1704710791060,"author":{"id":"3563873670221480","authorId":"3563873670221480","name":"我i168","avatar":"https://static.tigerbbs.com/34b2d0551b5ab028c13ab35747c4df8c","vip":1,"crmLevel":4,"crmLevelSwitch":1,"idStr":"3563873670221480","authorIdStr":"3563873670221480"},"htmlText":"Shortist’s short sighted view...dusts not settled, all have chance...while <a href=\"https://laohu8.com/S/NIO\">$NIO Inc.(NIO)$</a>has a unique position of BasS","listText":"Shortist’s short sighted view...dusts not settled, all have chance...while <a href=\"https://laohu8.com/S/NIO\">$NIO Inc.(NIO)$</a>has a unique position of BasS","text":"Shortist’s short sighted view...dusts not settled, all have chance...while $NIO Inc.(NIO)$has a unique position of BasS","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344701152","repostId":1127399444,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":344494188,"gmtCreate":1618422825644,"gmtModify":1704710679237,"author":{"id":"3551099562202267","authorId":"3551099562202267","name":"菡萏花开心存心_7116","avatar":"https://static.tigerbbs.com/8c3eecfd4b2a32902501e15e2c09f45e","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3551099562202267","authorIdStr":"3551099562202267"},"htmlText":"一羣沙雕，蔚來除了讓江淮代工，有半毛錢關係嗎，咋不說蘋果是富士康的，真特麼笑了","listText":"一羣沙雕，蔚來除了讓江淮代工，有半毛錢關係嗎，咋不說蘋果是富士康的，真特麼笑了","text":"一羣沙雕，蔚來除了讓江淮代工，有半毛錢關係嗎，咋不說蘋果是富士康的，真特麼笑了","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/344494188","repostId":1127399444,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4037807,"gmtCreate":1618441063412,"gmtModify":1680784089507,"authorId":3519036131541879,"author":{"id":3519036131541879,"idStr":"3519036131541879","authorId":3519036131541879,"name":"lucky第一","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":7,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":344494188,"type":1,"supId":0,"prevId":0,"content":"那么根本问题，还是没有说，你是看多，还是看空？","text":"那么根本问题，还是没有说，你是看多，还是看空？","html":"那么根本问题，还是没有说，你是看多，还是看空？"},{"id":4036984,"gmtCreate":1618426418371,"gmtModify":1680784075126,"authorId":3519036131541879,"author":{"id":3519036131541879,"idStr":"3519036131541879","authorId":3519036131541879,"name":"lucky第一","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":7,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":344494188,"type":1,"supId":0,"prevId":0,"content":"那么你是看好蔚来，还是看空呢？","text":"那么你是看好蔚来，还是看空呢？","html":"那么你是看好蔚来，还是看空呢？"},{"id":4036990,"gmtCreate":1618426539165,"gmtModify":1680784074481,"authorId":3551099562202267,"author":{"id":3551099562202267,"idStr":"3551099562202267","authorId":3551099562202267,"name":"菡萏花开心存心_7116","avatar":"https://static.tigerbbs.com/8c3eecfd4b2a32902501e15e2c09f45e","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":344494188,"type":1,"supId":0,"prevId":0,"content":"我没那水平，看到一群沙雕说蔚来是高端的江淮，我给他们科普一下，蔚来和江淮于苹果和富士康，是一样的。","text":"我没那水平，看到一群沙雕说蔚来是高端的江淮，我给他们科普一下，蔚来和江淮于苹果和富士康，是一样的。","html":"我没那水平，看到一群沙雕说蔚来是高端的江淮，我给他们科普一下，蔚来和江淮于苹果和富士康，是一样的。"}],"langContent":"CN"},{"id":344569820,"gmtCreate":1618415842060,"gmtModify":1704710586204,"author":{"id":"3571063925355053","authorId":"3571063925355053","name":"Lazybird","avatar":"https://static.tigerbbs.com/b9d6679c281c9b2ce1ad84ca4b3682b9","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3571063925355053","authorIdStr":"3571063925355053"},"htmlText":"Avoiding NIO and XPEV till they hit the 20s...govt supported means they probably won’t go bust but whether they can capture meaningful market share and make sustainable profits are what matterto justify the high stock price.&nbsp;","listText":"Avoiding NIO and XPEV till they hit the 20s...govt supported means they probably won’t go bust but whether they can capture meaningful market share and make sustainable profits are what matterto justify the high stock price.&nbsp;","text":"Avoiding NIO and XPEV till they hit the 20s...govt supported means they probably won’t go bust but whether they can capture meaningful market share and make sustainable profits are what matterto justify the high stock price.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344569820","repostId":1127399444,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":344221330,"gmtCreate":1618411129220,"gmtModify":1704710466327,"author":{"id":"3574984385549978","authorId":"3574984385549978","name":"JimmyChua","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3574984385549978","authorIdStr":"3574984385549978"},"htmlText":"Backed by china govt though","listText":"Backed by china govt though","text":"Backed by china govt though","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344221330","repostId":1127399444,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":344653407,"gmtCreate":1618407736609,"gmtModify":1704710341946,"author":{"id":"3577704452527934","authorId":"3577704452527934","name":"li0017in","avatar":"https://community-static.tradeup.com/news/9c547a43cfa894edee0ba2f8e15e301d","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3577704452527934","authorIdStr":"3577704452527934"},"htmlText":"You forgot that NIO is more than a car selling company. It offers battery swap and charging. And NIO has plenty of cost saving opportunity to bring up the bottom line later. It might be more than a TSLA","listText":"You forgot that NIO is more than a car selling company. It offers battery swap and charging. And NIO has plenty of cost saving opportunity to bring up the bottom line later. It might be more than a TSLA","text":"You forgot that NIO is more than a car selling company. It offers battery swap and charging. And NIO has plenty of cost saving opportunity to bring up the bottom line later. It might be more than a TSLA","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344653407","repostId":1127399444,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":344851517,"gmtCreate":1618400005639,"gmtModify":1704710200452,"author":{"id":"3578467063156657","authorId":"3578467063156657","name":"pianhua","avatar":"https://static.tigerbbs.com/5fe016149cfce241ec0da0576393d835","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"3578467063156657","authorIdStr":"3578467063156657"},"htmlText":"Good","listText":"Good","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/344851517","repostId":1127399444,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":17,"commentSize":13,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1127399444"}