Should You Jump Into NIO Shares Amid China's Stimulus Boost?

Zacks12-10

NIO Inc. NIO, a prominent player in China’s electric vehicle (EV) market, saw its shares rise 12% yesterday following news of bolder economic support from China’s top leaders. Its close peers, XPeng ...

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Its close peers, XPeng ...</p>\n\n<a href=\"https://finance.yahoo.com/news/jump-nio-shares-amid-chinas-135400641.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","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>Should You Jump Into NIO Shares Amid China's Stimulus Boost?</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\">\nShould You Jump Into NIO Shares Amid China's Stimulus Boost?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-10 21:54 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/jump-nio-shares-amid-chinas-135400641.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>NIO Inc. NIO, a prominent player in China’s electric vehicle (EV) market, saw its shares rise 12% yesterday following news of bolder economic support from China’s top leaders. Its close peers, XPeng ...</p>\n\n<a href=\"https://finance.yahoo.com/news/jump-nio-shares-amid-chinas-135400641.html\">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":"BK4555","symbol_name":"新能源车","start_time":0,"source_url":"https://finance.yahoo.com/news/jump-nio-shares-amid-chinas-135400641.html","article_id":"2490012711","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/jwyPsx2bfUxmBcBI.h.lsQ--~B/aD0zODY7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/4fac6f31b05aabf2afc85992db25f00a"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2490012711","pubTimestamp":1733838840,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"NIO Inc. NIO, a prominent player in China’s electric vehicle  market, saw its shares rise 12% yesterday following news of bolder economic support from China’s top leaders. Its close peers, XPeng XPEV and Li Auto LI, rose 13% and 8%, respectively.As the country prepares for a potential trade war with the United States when Donald Trump returns to office, China has committed to more aggressive fiscal measures and moderately looser monetary policies to stimulate domestic consumption. These moves are likely to reinvigorate the economy and combat stagnation. It bodes well for NIO, a company heavily reliant on the Chinese market for its sales.Given NIO’s sharp rally yesterday, investors may be wondering whether the stock is ready for a sustained rally or if this is just a short-term bounce. Let’s delve into the stock’s current position, growth prospects, and whether it’s a good time to buy or wait for a better entry point.NIO has shown progress in vehicle margins. The metric grew to 9.2% in ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4555":"新能源车","BK4588":"碎股","BK4503":"景林资产持仓","BK4551":"寇图资本持仓","BK4532":"文艺复兴科技持仓","BK4505":"高瓴资本持仓","LI":"理想汽车","BK4548":"巴美列捷福持仓","BK4526":"热门中概股","EVS.SI":"MSCI China Electric Vehicles and Future Mobility ETF-NikkoAM","BK4099":"汽车制造商","LU0052750758.USD":"富兰克林中国基金A Acc","BK4581":"高盛持仓","NIO.SI":"蔚来","LU0708995583.HKD":"TEMPLETON CHINA \"A\" (HKD) ACC","LU0320764599.SGD":"FTIF - Templeton China A Acc SGD","NIO":"蔚来","BK4534":"瑞士信贷持仓","XPEV":"小鹏汽车","BK4574":"无人驾驶","BK4509":"腾讯概念","BK4531":"中概回港概念","BK4563":"昨日强势股","BK4585":"ETF&股票定投概念","BK4504":"桥水持仓","09866":"蔚来-SW"},"translate_title":"在中国刺激措施的推动下，你应该买入蔚来股票吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NIO":1,"LI":1,"XPEV":0.9,"NIO.SI":0.6,"EVS.SI":0.6,"09866":0.6},"content_text":"NIO Inc. NIO, a prominent player in China’s electric vehicle (EV) market, saw its shares rise 12% yesterday following news of bolder economic support from China’s top leaders. Its close peers, XPeng XPEV and Li Auto LI, rose 13% and 8%, respectively.\nAs the country prepares for a potential trade war with the United States when Donald Trump returns to office, China has committed to more aggressive fiscal measures and moderately looser monetary policies to stimulate domestic consumption. These moves are likely to reinvigorate the economy and combat stagnation. It bodes well for NIO, a company heavily reliant on the Chinese market for its sales.\nGiven NIO’s sharp rally yesterday, investors may be wondering whether the stock is ready for a sustained rally or if this is just a short-term bounce. Let’s delve into the stock’s current position, growth prospects, and whether it’s a good time to buy or wait for a better entry point.\nNIO’s Strong Product Lineup and Battery Swap Tech\nThe company boasts a variety of models, including the ES6, ET5T, ES8, EC6, and more, which have driven its delivery growth. It is preparing to launch its flagship ET9 luxury sedan in the first quarter of 2025. ET9 is set to target high-end buyers, with the price tag exceeding $110,000. One of the key features of the ET9 is its steer-by-wire system, which promises improved handling and a superior driving experience.\nIn addition to its luxury offerings, NIO has launched the ONVO brand, which is aimed at attracting a broader consumer base with more affordable EV models. The L60, ONVO’s first vehicle, began deliveries in September, and the brand’s production capacity is expected to reach 10,000 units by December and 20,000 units by March 2025. With an expected 10% gross margin in 2024, growing to 15% in 2025, ONVO has the potential to drive significant revenue growth for the company.\nNIO is also preparing to expand its product portfolio further with the Firefly brand, targeting the compact car segment. This new brand, which will be unveiled at Nio Day 2024 on Dec. 21, will contribute to the company’s global expansion efforts. The first Firefly model is expected to begin deliveries in 2025, further bolstering NIO’s presence in both domestic and international markets.\nMoreover, NIO differentiates itself from competitors with its unique approach to EV infrastructure. Rather than relying solely on traditional charging stations, NIO has developed a network of battery-swapping stations, allowing customers to quickly exchange depleted batteries for fully charged ones. This system sets NIO apart in the highly competitive EV market and could be a key factor in sustaining its growth trajectory.\nNIO’s Improving Margins & Breakeven Targets by 2026\nNIO has shown progress in vehicle margins. The metric grew to 9.2% in the first quarter of 2024, was 12.2% in the second quarter and increased to 13.1% (up 2.1 percentage points yearly and 0.9 percentage points sequentially) in the third quarter of 2024 due to lower material cost per unit. This improvement was due in part to cost optimization in components and the supply chain, along with a reduction in material costs per unit. Encouragingly, NIO targets a vehicle margin of around 15% by the end of 2024.\nNIO expects to double its delivery volumes in 2025, buoyed by the introduction of new models. The company also expects its losses to narrow gradually in 2025 amid sales growth and cost savings. By 2026, the company aims to achieve breakeven. If that happens, it will be a big milestone for the company.\nPrice Performance & Valuation\nYear to date, NIO has underperformed the industry, sector, S&P 500 and its closest peers, LI and XPEV.\nYTD Price Performance Comparison\nImage Source: Zacks Investment Research\nOnce dubbed as the \"Tesla of China,\" NIO’s market cap has now fallen below $10 billion, down from $100 billion in 2021.\nFrom a valuation standpoint, NIO’s price-to-sales (P/S) ratio, currently at 0.65, is well below its 5-year median values. It is also trading at a discount compared to XPEV and LI.\nNIO’s P/S F12M Vs. XPEV & LI\nImage Source: Zacks Investment Research\nNIO is Not a Buy Yet\nNIO's recovery remains tied to its ability to achieve consistent margin improvements and revenue growth. With the stock trading at a discount, patient investors may find value in holding NIO for the long term, but entering now may not be the optimal move.\nThe loss estimates for current quarter and full year have widened over the past seven days.\nImage Source: Zacks Investment Research\nWhile management expects to break even by 2026, it’s important to temper the optimism with caution, as EV companies have historically been overly ambitious with their forecasts.\nFor now, the most prudent approach is to adopt a wait-and-see strategy. Keep an eye on NIO’s performance over the next few quarters, especially as the company rolls out new models and expands its global footprint. If the firm can prove its ability to deliver consistent growth, it could become a compelling long-term investment. Until then, it’s better to stay on the sidelines.\nNIO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nNIO Inc. (NIO) : Free Stock Analysis Report\nLi Auto Inc. Sponsored ADR (LI) : Free Stock Analysis Report\nXPeng Inc. Sponsored ADR (XPEV) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"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/2490012711"}