$NIO Inc.(NIO)$ One more helpful tidbit from Tesla's ER that should apply to Nio as well:
"Tesla reported the cost of goods sold per vehicle hit a historic low of $35,100. That was another big contributor to the gross margin and earnings beats."
If the cost of goods is going down for Tesla, it's almost certainly going down for Nio. I think Nio could come close to a 15% vehicle margin in Q3 (up from 12.2% in Q2). Given the rapid increase in how many vehicles Nio is delivering, the combination of the rapid growth in revenue combined with rapid margin improvement could well send Nio's stock soaring after the company reports earnings and probably also in the lead-up to earnings.
Great news for Nio on all fronts!
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