Don’t Be Fooled! A NIO Stock Crash Could Be Just Around the Corner.

InvestorPlace2023-09-08

At the start of September, Nio (NIO) reported strong delivery growth in the preceding month.Yet while this suggests the “growth resurgence” narrative is playing out, don’t assume it’s time to go ...

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Comments

FGP
2023-09-09
FGP
Dont listen to fools, but some fools here like to listen and follow fools. They are the real fools 🤭😂
CIG
2023-09-08
CIG
Simply do the opposite of these gurus commented.
- Meoooow:
  Price seems attractive now.
  Time to buy or wait for them to dump more?
Meoooow
2023-09-08
Meoooow
Is the crash over?
- Meoooow:
  Time will tell who is the fool.
clouddragon
2023-09-08
clouddragon
whats the story with these price wars you talk about?
Yonhuat
2023-09-08
Yonhuat
Investor place has always been the most bearish on Nio, Regardless of good or bad news. Paid FUD at its best.
NI0
2023-09-08
NI0
NIO to 💯 💎 hand

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A NIO Stock Crash Could Be Just Around the Corner.","media":"InvestorPlace","content":"<div>\n<p>At the start of September, Nio (NIO) reported strong delivery growth in the preceding month.Yet while this suggests the “growth resurgence” narrative is playing out, don’t assume it’s time to go ...</p>\n\n<a href=\"https://investorplace.com/market360/2023/09/dont-be-fooled-a-nio-stock-crash-could-be-just-around-the-corner/\">Source Link</a>\n\n</div>\n","source":"investorplace_stock_picks","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Don’t Be Fooled! 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A NIO Stock Crash Could Be Just Around the Corner.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-09-08 23:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/market360/2023/09/dont-be-fooled-a-nio-stock-crash-could-be-just-around-the-corner/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>At the start of September, Nio (NIO) reported strong delivery growth in the preceding month.Yet while this suggests the “growth resurgence” narrative is playing out, don’t assume it’s time to go ...</p>\n\n<a href=\"https://investorplace.com/market360/2023/09/dont-be-fooled-a-nio-stock-crash-could-be-just-around-the-corner/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NIO.SI","symbol_name":"蔚来","start_time":0,"source_url":"https://investorplace.com/market360/2023/09/dont-be-fooled-a-nio-stock-crash-could-be-just-around-the-corner/","article_id":"2365837392","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2365837392","pubTimestamp":1694186707,"columns":[],"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"In light of delivery growth uncertainty and falling margins, there's a clear takeaway: NIO stock is still a sell.","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"NIO.SI":"蔚来","09866":"蔚来-SW","NIO":"蔚来"},"translate_title":"不要被骗了！蔚来股市崩盘可能就在眼前。","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NIO":1,"09866":0.6,"NIO.SI":0.6},"content_text":"At the start of September, Nio (NIO) reported strong delivery growth in the preceding month.Yet while this suggests the “growth resurgence” narrative is playing out, don’t assume it’s time to go bullish.Falling margins could outweigh this positive, limiting upside for shares in the China-based EV maker, while leaving them at risk of further declines.There’s been plenty of news (good and bad) with Nio (NYSE: NIO) stock recently. 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This represented an 81% increase in deliveries compared to the prior year’s month.It was also the second month in a row that the company’s delivery volume well above levels reported both last year and earlier this year. This resurgence in deliveries may not be enough for Nio to hit its very ambitious 2023 sales target (250,000 vehicles), but it is by all means a step in the right direction.If this level of monthly deliveries keeps up, reaching annualized sales of 250,000 (or more) is well within-reach. Or is it? Again, despite these strong numbers, I remain skeptical that a continued recovery for the company, and for NIO stock, is in store.For one, much of this sales growth resurgence may be because of new vehicle launches in recent months, like the launch of the ES6 electric SUV this summer. Following an initial strong start, sales could cool off. A worsening of the Chinese economic slowdown may also affect future deliveries/sales.Falling Margins are a ConcernBesides the questionable prospects of the company’s sales resurgence continuing, it’s also telling that NIO stock experienced just a brief uptick higher following the August delivery numbers release.Those bullish on shares may think this discrepancy works to their advantage, but to me it suggests that the market believes something else counters that positive.That would be Nio’s falling gross margins. Last quarter, vehicle margins fell to 6.2%. Compare that to the prior year’s quarter, when vehicle margins came in at 16.7%.Although one can chalk this up to falling sales during the period, irrespective of whether the deliveries resurgence carries on, or if sales dip again, falling margins could continue.Why? Back in June, Nio joined in on the Chinese EV price war. This may also contribute to the recent sales resurgence, yet it may mean as well that Nio’s vehicle margins will not improve much this quarter.Without significant vehicle margin improvement, chances are that the company will keep struggling to narrow net losses/make a move towards consistent profitability. This leaves NIO more likely to continue being on a downwards trajectory.Bottom Line: Still a SellNIO may on the surface seem like a prime “buy the dip” opportunity at lower prices, but the market doesn’t often mis-price stocks, especially high-profile stocks like this one.Mr. Market has good reason to stay in “show me” mode with this EV play. The jury’s still out whether the aforementioned sales resurgence will lose steam or set to continue. The same goes with the company’s vehicle margins.Taking this into account, now’s not the time to go contrarian. As the excitement (albeit muted) about last month’s vehicle sales dissipates, margin worries could intensify again. This may be enough to push NIO back down toward its 52-week low ($7 per share).If delivery numbers for this month fall short of rising expectations, shares could dip to even lower prices. With this, there’s a clear takeaway: NIO stock is still a sell.NIO stock earns a D rating in Portfolio Grader.","kind":"highlight","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":217819591291072,"gmtCreate":1694213530671,"gmtModify":1694233918528,"author":{"id":"3584079457608282","authorId":"3584079457608282","name":"FGP","avatar":"https://community-static.tradeup.com/news/4f96275867e9fcc09f90747c0edcd143","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":9,"crmLevelSwitch":1,"authorIdStr":"3584079457608282","idStr":"3584079457608282"},"htmlText":"Dont listen to fools, but some fools here like to listen and follow fools. They are the real fools 🤭😂","listText":"Dont listen to fools, but some fools here like to listen and follow fools. They are the real fools 🤭😂","text":"Dont listen to fools, but some fools here like to listen and follow fools. They are the real fools 🤭😂","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/217819591291072","repostId":2365837392,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":217715113201672,"gmtCreate":1694188001356,"gmtModify":1694188007855,"author":{"id":"3583974841960176","authorId":"3583974841960176","name":"CIG","avatar":"https://static.tigerbbs.com/6c2077e2370e1ffcaca7e29b875be2be","vip":1,"hat":"https://static.tigerbbs.com/f84d87792f02cf78e80ee34979fd31e5","crmLevel":5,"crmLevelSwitch":1,"authorIdStr":"3583974841960176","idStr":"3583974841960176"},"htmlText":"Simply do the opposite of these gurus commented.","listText":"Simply do the opposite of these gurus commented.","text":"Simply do the opposite of these gurus commented.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":10,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/217715113201672","repostId":2365837392,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":106521111,"gmtCreate":1694221847485,"gmtModify":1694221855766,"authorId":3581582741176868,"author":{"id":3581582741176868,"idStr":"3581582741176868","authorId":3581582741176868,"name":"Meoooow","avatar":"https://community-static.tradeup.com/news/c0057abac9f2fb5047a719b0c0f8803f","vip":1,"currentWearingBadge":{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":7,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":217715113201672,"type":1,"supId":0,"prevId":0,"content":"Price seems attractive&nbsp; now.<br>\nTime to buy or wait for them to dump more?<br>","text":"Price seems attractive&nbsp; now.<br>\nTime to buy or wait for them to dump more?<br>","html":"Price seems attractive&nbsp; now.<br>\nTime to buy or wait for them to dump more?<br>"}],"langContent":"EN"},{"id":217708833443928,"gmtCreate":1694186355368,"gmtModify":1694186359800,"author":{"id":"3581582741176868","authorId":"3581582741176868","name":"Meoooow","avatar":"https://community-static.tradeup.com/news/c0057abac9f2fb5047a719b0c0f8803f","vip":1,"crmLevel":7,"crmLevelSwitch":1,"authorIdStr":"3581582741176868","idStr":"3581582741176868"},"htmlText":"Is the crash over?&nbsp;","listText":"Is the crash over?&nbsp;","text":"Is the crash over?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":9,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/217708833443928","repostId":2365837392,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":106521234,"gmtCreate":1694237419966,"gmtModify":1694239760788,"authorId":3581582741176868,"author":{"id":3581582741176868,"idStr":"3581582741176868","authorId":3581582741176868,"name":"Meoooow","avatar":"https://community-static.tradeup.com/news/c0057abac9f2fb5047a719b0c0f8803f","vip":1,"currentWearingBadge":{"badgeId":"a83d7582f45846ffbccbce770ce65d84-1","templateUuid":"a83d7582f45846ffbccbce770ce65d84","name":"Real Trader","description":"Completed a transaction","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":7,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":217708833443928,"type":1,"supId":0,"prevId":0,"content":"Time will tell who is the fool.","text":"Time will tell who is the fool.","html":"Time will tell who is the fool."}],"langContent":"EN"},{"id":217667671142536,"gmtCreate":1694176318923,"gmtModify":1694176326597,"author":{"id":"4147085113828402","authorId":"4147085113828402","name":"clouddragon","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","vip":1,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":5,"crmLevelSwitch":1,"authorIdStr":"4147085113828402","idStr":"4147085113828402"},"htmlText":"whats the story with these price wars you talk about?","listText":"whats the story with these price wars you talk about?","text":"whats the story with these price wars you talk about?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":9,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/217667671142536","repostId":2365837392,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":217667370000464,"gmtCreate":1694176314901,"gmtModify":1694176320130,"author":{"id":"4097900715273400","authorId":"4097900715273400","name":"Yonhuat","avatar":"https://static.tigerbbs.com/a4ab9f0ed4305d88e3767c39675cedf3","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":6,"crmLevelSwitch":1,"authorIdStr":"4097900715273400","idStr":"4097900715273400"},"htmlText":"Investor place has always been the most bearish on Nio, Regardless of good or bad news. Paid FUD at its best.&nbsp;","listText":"Investor place has always been the most bearish on Nio, Regardless of good or bad news. Paid FUD at its best.&nbsp;","text":"Investor place has always been the most bearish on Nio, Regardless of good or bad news. Paid FUD at its best.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":10,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/217667370000464","repostId":2365837392,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":217660653408288,"gmtCreate":1694174733642,"gmtModify":1694174739986,"author":{"id":"4096106909775100","authorId":"4096106909775100","name":"NI0","avatar":"https://community-static.tradeup.com/news/0c6b973cfa1cde8030c7812630029a00","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"4096106909775100","idStr":"4096106909775100"},"htmlText":"NIO to 💯&nbsp; 💎 hand","listText":"NIO to 💯&nbsp; 💎 hand","text":"NIO to 💯 💎 hand","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":8,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/217660653408288","repostId":2365837392,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":21,"commentSize":9,"repostSize":8,"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/2365837392"}