Avoid NIO Stock: The Struggling EV Maker Is Grasping at Straws

InvestorPlace2023-12-15

As unprofitability persists, and its shares keep sliding, Nio (NIO) is pulling out all the stops to reverse these disheartening trends.Making efforts may not be enough to save the day for struggling ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

King19
2023-12-16
King19
Good time to buy more before it shoot up in 2024
FGP
2023-12-15
FGP
Burn these shorters
King19
2023-12-15
King19
😂
Shawn81
2023-12-15
Shawn81
Let's see how it goes, analyst does what they do best, manipulate people to sell and they buy at low price. Like a clock work that happens.
binbubu
2023-12-15
binbubu
空頭早點爆倉
suthanb4u
2023-12-15
suthanb4u
Another person who is short $NIO. Such a fearmongers. Wait till you guys get wrecked. !

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2391671306?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2023-12-15 21:26","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2391671306","market":"us","top_or_hot":-1,"title":"Avoid NIO Stock: The Struggling EV Maker Is Grasping at Straws","media":"InvestorPlace","content":"<div>\n<p>As unprofitability persists, and its shares keep sliding, Nio (NIO) is pulling out all the stops to reverse these disheartening trends.Making efforts may not be enough to save the day for struggling ...</p>\n\n<a href=\"https://investorplace.com/market360/2023/12/avoid-nio-stock-the-struggling-ev-maker-is-grasping-at-straws/\">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>Avoid NIO Stock: The Struggling EV Maker Is Grasping at Straws</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAvoid NIO Stock: The Struggling EV Maker Is Grasping at Straws\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-12-15 21:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/market360/2023/12/avoid-nio-stock-the-struggling-ev-maker-is-grasping-at-straws/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>As unprofitability persists, and its shares keep sliding, Nio (NIO) is pulling out all the stops to reverse these disheartening trends.Making efforts may not be enough to save the day for struggling ...</p>\n\n<a href=\"https://investorplace.com/market360/2023/12/avoid-nio-stock-the-struggling-ev-maker-is-grasping-at-straws/\">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":"BK4532","symbol_name":"文艺复兴科技持仓","start_time":0,"source_url":"https://investorplace.com/market360/2023/12/avoid-nio-stock-the-struggling-ev-maker-is-grasping-at-straws/","article_id":"2391671306","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2391671306","pubTimestamp":1702646792,"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"It's understandable why the company is pulling out all the stops, but don't count on these efforts saving the day for NIO stock.","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4532":"文艺复兴科技持仓","09866":"蔚来-SW","BK4531":"中概回港概念","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","BK4555":"新能源车","NIO.SI":"蔚来","BK4509":"腾讯概念","LU0320764599.SGD":"FTIF - Templeton China A Acc SGD","LU0052750758.USD":"富兰克林中国基金A Acc","NIO":"蔚来","BK4526":"热门中概股","BK4588":"碎股","BK4574":"无人驾驶","BK4505":"高瓴资本持仓","BK4581":"高盛持仓","BK4504":"桥水持仓","LU0708995583.HKD":"TEMPLETON CHINA \"A\" (HKD) ACC","BK4099":"汽车制造商","BK4548":"巴美列捷福持仓"},"translate_title":"避开蔚来股票：苦苦挣扎的电动汽车制造商正在抓救命稻草","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NIO":1,"NIO.SI":0.6,"09866":0.6},"content_text":"As unprofitability persists, and its shares keep sliding, Nio (NIO) is pulling out all the stops to reverse these disheartening trends.Making efforts may not be enough to save the day for struggling EV makers.Investor patience is wearing thin, best to avoid NIO stock.Source: Piotr Swat / Shutterstock.comThe management at China-based EV maker Nio (NYSE:NIO) faces a twofold challenge. First, persistent unprofitability and sales growth challenges needs to be solved. Second, and related to the first challenge, Nio’s management needs to win back the market’s past high enthusiasm for NIO stock.Shares have experienced more modest price declines this year compared to 2022. However, much like with profitability and growth, investor sentiment is trending in the wrong direction. This needs to be corrected, and fast.Taking this into account, it’s not a mystery as to why the company seems to be pulling all the stops lately to fast-track a turnaround (more below). Yet while Nio’s top brass may be giving 110% to fix the issues hurting both the company and the stock, should you count on a big payoff for these efforts?Not so fast, as I’ll explain below.NIO Stock, its Big Problems, and its Planned Big SolutionsIn its latest monthly deliveries report, Nio talked up a big game, touting 12.6% year-over-year deliveries growth for November, as well as stating that year-to-date sales were up 33.1% compared to January-November 2022. At first glance, these numbers seem reliable.However, as MarketWatch reported that same day, these figures represented an underperformance compared to the company’s main China-based peers. The same “sounds good only on the surface” dynamic can also be said to apply with Nio’s latest quarterly results, which came out on Dec. 5.Although results came in ahead of expectations, and NIO stock briefly surged following the release, the market quickly wised up. Adjusted net losses for the quarter ($542 million) were less than expected, but only slightly (forecasts called for adjusted net losses of $600 million).Vehicle margins for Q3 2023 (11%) were much better than margins reported in Q2 (6.2%). They were still down on a year-over-year basis.In short, the big same problems that have kept knocking NIO lower (underwhelming growth, heavy losses) have not gone away. Again, the company has big solutions in the works, yet these hardly guarantee a massive comeback lies ahead.Why Layoffs and a Spinoff May Not Save the DayAlongside the release of the latest deliveries and financial data, there’s been quite a bit of news lately with NIO stock regarding the company’s turnaround plans. First, after announcing last month plans to lay off 10% of its workforce, there are rumors that Nio is considering another round of layoffs.Second, as Reuters reported in a Dec. 6 exclusive, the company may be pursuing another actions in its efforts to become profitable: spin off its battery segment. Nio refused to address the spin-off rumors, but this plan, along with past and potential layoffs, may reduce cash burn. Or will it?Although cost cutting may enable Nio to report “less bad” results in subsequent quarters, don’t assume that these cuts mean a quick trip to profitability. Nio has previously noted that its cost reduction efforts could save it around 2 billion yuan next year. That’s around $280.4 million.While nothing to sneeze at, such cost savings are well below the aforementioned big losses from last quarter alone. If that’s not bad enough, these aggressive cost-cutting measures may also worsen its competitive disadvantage.The Verdict: Investor Patience Wears ThinFailing to plan is planning to fail, the saying goes, but just because Nio has formulated a turnaround plan doesn’t mean success will be a cinch. High competition in the Chinese EV space could continue to make it difficult for Nio to re-accelerate growth, as I have argued previously.In fact, Nio’s possible pivot from free-spending to penny-pinching could make matters worse. While perhaps intending to cut the fat out of its operating expenses, it may be cutting bone and vital organs instead. Larger, better capitalized rivals could gain a greater edge.At the same time Nio’s turnaround appears very questionable, the patience of investors keeps wearing thin. Sentiment for EV stocks across the board keeps turning bearish, as headwinds for the industry intensify globally.With this, the verdict remains clear: continue to avoid NIO stock.NIO stock earns a D rating in Portfolio Grader.","kind":null,"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":0},"commentList":[{"id":252740467454000,"gmtCreate":1702714902549,"gmtModify":1702714907116,"author":{"id":"4088135301967120","authorId":"4088135301967120","name":"King19","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":7,"crmLevelSwitch":0,"idStr":"4088135301967120","authorIdStr":"4088135301967120"},"htmlText":"Good time to buy more before it shoot up in 2024","listText":"Good time to buy more before it shoot up in 2024","text":"Good time to buy more before it shoot up in 2024","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/252740467454000","repostId":2391671306,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":252476146237696,"gmtCreate":1702650498724,"gmtModify":1702650747646,"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,"idStr":"3584079457608282","authorIdStr":"3584079457608282"},"htmlText":"Burn these shorters","listText":"Burn these shorters","text":"Burn these shorters","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/252476146237696","repostId":2391671306,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":252474277126400,"gmtCreate":1702650042398,"gmtModify":1702650046443,"author":{"id":"4088135301967120","authorId":"4088135301967120","name":"King19","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":7,"crmLevelSwitch":0,"idStr":"4088135301967120","authorIdStr":"4088135301967120"},"htmlText":"😂&nbsp;","listText":"😂&nbsp;","text":"😂","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/252474277126400","repostId":2391671306,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":252474077851936,"gmtCreate":1702650008127,"gmtModify":1702650012076,"author":{"id":"3585449291961245","authorId":"3585449291961245","name":"Shawn81","avatar":"https://community-static.tradeup.com/news/113799cd38483305e37cd0c67649b50f","vip":1,"crmLevel":2,"crmLevelSwitch":0,"idStr":"3585449291961245","authorIdStr":"3585449291961245"},"htmlText":"Let's see how it goes, analyst does&nbsp;what they do best, manipulate people to sell and they buy at low price. Like a clock work that happens.&nbsp;","listText":"Let's see how it goes, analyst does&nbsp;what they do best, manipulate people to sell and they buy at low price. Like a clock work that happens.&nbsp;","text":"Let's see how it goes, analyst does what they do best, manipulate people to sell and they buy at low price. Like a clock work that happens.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/252474077851936","repostId":2391671306,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":252474437267512,"gmtCreate":1702649964492,"gmtModify":1702649969227,"author":{"id":"3586655210457677","authorId":"3586655210457677","name":"binbubu","avatar":"https://static.tigerbbs.com/19c112721b826cedf3bc9b1926684675","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3586655210457677","authorIdStr":"3586655210457677"},"htmlText":"空頭早點爆倉","listText":"空頭早點爆倉","text":"空頭早點爆倉","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/252474437267512","repostId":2391671306,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"},{"id":252473343955104,"gmtCreate":1702649880893,"gmtModify":1702649885400,"author":{"id":"4096841192952540","authorId":"4096841192952540","name":"suthanb4u","avatar":"https://community-static.tradeup.com/news/9f20cddb20a5bf9628a34649fd09fd65","vip":1,"crmLevel":8,"crmLevelSwitch":1,"idStr":"4096841192952540","authorIdStr":"4096841192952540"},"htmlText":"Another person who is short $NIO. Such a fearmongers. Wait till you guys get wrecked. !","listText":"Another person who is short $NIO. Such a fearmongers. Wait till you guys get wrecked. !","text":"Another person who is short $NIO. Such a fearmongers. Wait till you guys get wrecked. !","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/252473343955104","repostId":2391671306,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":5,"commentSize":6,"repostSize":4,"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":"4.29.2","shortVersion":"4.29.2","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/2391671306"}