NIO: Abu Dhabi Deal Could Lead To Major Breakout (Rating Upgrade)

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NIO: Abu Dhabi Deal Could Lead To Major Breakout (Rating Upgrade)

seekingalpha2023-12-26

NIO receives a major strategic equity investment of $2.2 billion from Abu Dhabi-based CYVN Holdings.The investment boosts NIO's balance sheet and demonstrates confidence in the company's potential as ...

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Dan1192
·2023-12-26
This article is bollocks. It's still cash burning at a massive rate despite the massive marketing campaign. Probably will be in roller coaster mode for another 2-3 years before breaking out, if it doesnt fizzle out before. Besides, the new investors probably bought the shares below market rate. The current price is based on hype and have not reflected the reality of the diluted share price. Ideally n$NIO Inc.(NIO)$ biggest hope is to be merged with a more profitable car manufacturer.
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Cedric77
·2023-12-26
Hard fact :As of December 26, 2023, investing in NIO stock carries significant risks. While recent developments such as a $2.2 billion cash infusion and potential battery unit spin-off offer promise, but NIO remains unprofitable with analysts expecting a loss exceeding $2.7 billion for 2023. This raises concerns about its long-term viability, especially in a competitive EV market. Positives: The Chinese electric vehicle market is expected to grow significantly in the coming years, and NIO is well-positioned to benefit from this growth. The company has a strong brand reputation and a loyal following among Chinese consumers. Innovation: NIO is investing heavily in research and development, and it is at the forefront of electric vehicle technology. The company has developed its own batt
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(NYSE:NIO), relating to a major strategic equity investment of CYVN Holdings, NIO’s fundamental and chart situation has greatly improved.The news caused NIO’s stock price to increase by only 5% after NIO disclosed this investment, but the stock is gathering strength for a potential breakout above the 200-day moving average line.I think the deal is very significant for NIO as it is the first big deal that includes a major Middle Eastern investor which lends credibility to NIO’s business model and adds substantial cash resources that could finally push NIO over the finishing line as far as profitability is concerned.My Rating HistoryThe strategic investment deal with CYVN Holdings leads to a Buy Rating for NIO as it enhances the company’s already improving financial setup.The attraction of $2.2 billion in cash from a Middle Eastern investor shores up NIO’s balance sheet and also, and this shouldn’t be underestimated, is a show of confidence in NIO’s appeal as a major electric vehicle company with worldwide delivery potential.Abu Dhabi Seals Major $2.2 Billion Investment DealMiddle Eastern investors have not a reputation for being short on cash and this time the beneficiary is NIO whose stock price has fallen below $10 in September and remained below this level ever since. The low stock price itself may have been a reason for CYVN Holdings to invest in the company and I think the strategic equity investment could create fireworks for NIO’s stock in the years ahead.An investment fund of Abu Dhabi, CYVN Holdings, has decided to invest a whopping $2.2 billion into electric vehicle company NIO at a time of growing losses and some headwinds on the margin side of the business.With NIO’s net loss reaching 4.6 billion Yuan in the third quarter (US$624.6 million), reflecting an 11% increase compared to the same period in 2022, NIO is desperate to raise its cash levels.Though NIO’s sales kept surging in the third quarter, the company is losing a rather large amount of money each quarter: Losses declined compared to the second quarter, but this doesn’t change the fact that NIO, at least for the time being, is burning through cash quite quickly.Consolidated Statements Of Comprehensive Loss (NIO Inc)The Abu Dhabi company, which previously also subscribed to receiving NIO shares, was already an investor in the Chinese car company. CYVN Holdings now agreed to purchase 294,000,000 newly issued Class A ordinary shares of NIO at a price of US$7.50.The total value of the strategic equity investment is therefore $2.2 billion and the attraction of such a sum of money shortly after the electric vehicle company reported announced the lay-off of 10% of its workforce, speaks to the attractiveness of NIO as a long-term electric vehicle investment, at least from the perspective of this Middle Eastern investor.Deal Shores Up NIO’s Balance SheetThe deal is significant in a few ways. One, CYVN Holdings is set to own a whopping 20% of NIO after the money has been paid for the newly issued Class A ordinary shares, which will make CYVN the first Middle Eastern investor that holds such a large stake in a Chinese electric vehicle company.Two, NIO’s operations are losing money and will continue to do so at least for a couple more years. The electric vehicle maker is cash flow-negative because it needs to fund the development of new electric vehicles and has had a rather constant need to raise cash from external sources.At the end of 3Q-23, NIO had $3.3 billion in cash available to which the $2.2 billion will be added. Thus, NIO’s liquidity profile in light of ongoing losses has substantially been enhanced, thanks to CYVN Holdings’ strategic equity commitment.Assets Overview (NIO Inc)NIO Looks Ripe For A Breakout (Technical Analysis)The report of CYVN Holdings’ strategic equity investment has created positive stock price momentum for NIO which, as I said, languished below $10 since September.The Monday report about the equity investment has improved NIO’s relative strength and the stock has already broken through the 50-day moving average (resistance) line.The next challenge is the 200-day moving average line which presently runs at $9.18. I see short-term upside, based on the strength of the present momentum, at least to $10 which is also where I placed my indicative fair value for NIO.Moving Averages (StockCharts.com)Industry Headwinds, Improved Risk SituationNIO produces a boatload of losses and the third quarter showed investors better not expect a fundamental change in the near-term profit situation of the electric vehicle company.NIO also had to lay off workers, a rather large 10% of its workforce, which speaks to the pressures in the industry. With that being said, though, I think the risks seem to have further decreased.My ConclusionI think the equity investment of CYVN Holdings has much deeper implications than the mere payment of $2.2 billion to shore up NIO’s balance sheet and fund NIO’s ongoing operating losses.Middle Eastern investors from resource-rich Abu Dhabi are anchor investors looking for long-term strategic investments in fast-growing industries and they clearly see value in NIO’s long-term EV strategy. I think the deal is unequivocally positive for NIO from the points of view of liquidity, balance sheet strength, and investor confidence.With NIO’s stock gaining new momentum following the report on Monday, I think NIO deserves a stock classification of Buy and appears ripe for a larger breakout.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":0},"commentList":[{"id":256113023570048,"gmtCreate":1703561738384,"gmtModify":1703561742910,"author":{"id":"3580519485452891","authorId":"3580519485452891","name":"Dan1192","avatar":"https://community-static.tradeup.com/news/b81c29971d6ab7fd0c6f219b749f40ee","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":5,"crmLevelSwitch":1},"htmlText":"This article is bollocks.&nbsp;It's still cash burning at a massive rate despite the massive marketing campaign.&nbsp; Probably will be in roller coaster mode for another 2-3 years before breaking out, if it doesnt fizzle out before. Besides, the new investors probably bought the shares below market rate. The current price is based on hype and have not reflected the reality of the diluted share price.&nbsp; Ideally n<a href=\"https://ttm.financial/S/NIO\">$NIO Inc.(NIO)$&nbsp;</a> biggest hope is to be merged with a more profitable car manufacturer.&nbsp;","listText":"This article is bollocks.&nbsp;It's still cash burning at a massive rate despite the massive marketing campaign.&nbsp; Probably will be in roller coaster mode for another 2-3 years before breaking out, if it doesnt fizzle out before. Besides, the new investors probably bought the shares below market rate. The current price is based on hype and have not reflected the reality of the diluted share price.&nbsp; Ideally n<a href=\"https://ttm.financial/S/NIO\">$NIO Inc.(NIO)$&nbsp;</a> biggest hope is to be merged with a more profitable car manufacturer.&nbsp;","text":"This article is bollocks. It's still cash burning at a massive rate despite the massive marketing campaign. Probably will be in roller coaster mode for another 2-3 years before breaking out, if it doesnt fizzle out before. Besides, the new investors probably bought the shares below market rate. The current price is based on hype and have not reflected the reality of the diluted share price. Ideally n$NIO Inc.(NIO)$ biggest hope is to be merged with a more profitable car manufacturer.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/256113023570048","repostId":2394536552,"repostType":2,"repost":{"id":"2394536552","pubTimestamp":1703545943,"share":"https://www.laohu8.com/m/news/2394536552?lang=&edition=full","pubTime":"2023-12-26 07:12","market":"us","language":"en","title":"NIO: Abu Dhabi Deal Could Lead To Major Breakout (Rating Upgrade)","url":"https://stock-news.laohu8.com/highlight/detail?id=2394536552","media":"seekingalpha","summary":"NIO receives a major strategic equity investment of $2.2 billion from Abu Dhabi-based CYVN Holdings.The investment boosts NIO's balance sheet and demonstrates confidence in the company's potential as ","content":"<html><head></head><body><ul style=\"\"><li><p>NIO receives a major strategic equity investment of $2.2 billion from Abu Dhabi-based CYVN Holdings.</p></li><li><p>The investment boosts NIO&#39;s balance sheet and demonstrates confidence in the company&#39;s potential as a global electric vehicle player.</p></li><li><p>NIO&#39;s stock price shows signs of a potential breakout above the 200-day moving average line.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5ddf0943a93f4ecd7825e6732cb46f8a\" tg-width=\"750\" tg-height=\"563\"/></p><p>In light of a news release by electric vehicle company <strong>NIO Inc. (NYSE:NIO)</strong>, relating to a major strategic equity investment of CYVN Holdings, NIO’s fundamental and chart situation has greatly improved.</p><p>The news caused NIO’s stock price to increase by only 5% after NIO disclosed this investment, but the stock is gathering strength for a potential breakout above the 200-day moving average line.</p><p>I think the deal is very significant for NIO as it is the first big deal that includes a major Middle Eastern investor which lends credibility to NIO’s business model and adds substantial cash resources that could finally push NIO over the finishing line as far as profitability is concerned.</p><h2 id=\"id_1842905432\">My Rating History</h2><p>The strategic investment deal with CYVN Holdings leads to a Buy Rating for NIO as it enhances the company’s already improving financial setup.</p><p>The attraction of $2.2 billion in cash from a Middle Eastern investor shores up NIO’s balance sheet and also, and this shouldn’t be underestimated, is a show of confidence in NIO’s appeal as a major electric vehicle company with worldwide delivery potential.</p><h2 id=\"id_3930972485\">Abu Dhabi Seals Major $2.2 Billion Investment Deal</h2><p>Middle Eastern investors have not a reputation for being short on cash and this time the beneficiary is NIO whose stock price has fallen below $10 in September and remained below this level ever since. The low stock price itself may have been a reason for CYVN Holdings to invest in the company and I think the strategic equity investment could create fireworks for NIO’s stock in the years ahead.</p><p>An investment fund of Abu Dhabi, CYVN Holdings, has decided to invest a whopping $2.2 billion into electric vehicle company NIO at a time of growing losses and some headwinds on the margin side of the business.</p><p>With NIO’s net loss reaching 4.6 billion Yuan in the third quarter (US$624.6 million), reflecting an 11% increase compared to the same period in 2022, NIO is desperate to raise its cash levels.</p><p>Though NIO’s sales kept surging in the third quarter, the company is losing a rather large amount of money each quarter: Losses declined compared to the second quarter, but this doesn’t change the fact that NIO, at least for the time being, is burning through cash quite quickly.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f0438fa1c25635c1817eb0bae60cd4a6\" tg-width=\"640\" tg-height=\"329\"/></p><p>Consolidated Statements Of Comprehensive Loss (NIO Inc)</p><p></p><p>The Abu Dhabi company, which previously also subscribed to receiving NIO shares, was already an investor in the Chinese car company. CYVN Holdings now agreed to purchase 294,000,000 newly issued Class A ordinary shares of NIO at a price of US$7.50.</p><p>The total value of the strategic equity investment is therefore $2.2 billion and the attraction of such a sum of money shortly after the electric vehicle company reported announced the lay-off of 10% of its workforce, speaks to the attractiveness of NIO as a long-term electric vehicle investment, at least from the perspective of this Middle Eastern investor.</p><h2 id=\"id_186804505\">Deal Shores Up NIO’s Balance Sheet</h2><p>The deal is significant in a few ways. One, CYVN Holdings is set to own a whopping 20% of NIO after the money has been paid for the newly issued Class A ordinary shares, which will make CYVN the first Middle Eastern investor that holds such a large stake in a Chinese electric vehicle company.</p><p>Two, NIO’s operations are losing money and will continue to do so at least for a couple more years. The electric vehicle maker is cash flow-negative because it needs to fund the development of new electric vehicles and has had a rather constant need to raise cash from external sources.</p><p>At the end of 3Q-23, NIO had $3.3 billion in cash available to which the $2.2 billion will be added. Thus, NIO’s liquidity profile in light of ongoing losses has substantially been enhanced, thanks to CYVN Holdings’ strategic equity commitment.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dcde653c6c6fcbdd4fbb8f650dd4f7b4\" tg-width=\"640\" tg-height=\"281\"/></p><p>Assets Overview (NIO Inc)</p><p></p><h2 id=\"id_906052014\">NIO Looks Ripe For A Breakout (Technical Analysis)</h2><p>The report of CYVN Holdings’ strategic equity investment has created positive stock price momentum for NIO which, as I said, languished below $10 since September.</p><p>The Monday report about the equity investment has improved NIO’s relative strength and the stock has already broken through the 50-day moving average (resistance) line.</p><p>The next challenge is the 200-day moving average line which presently runs at $9.18. I see short-term upside, based on the strength of the present momentum, at least to $10 which is also where I placed my indicative fair value for NIO.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3a70d8b4561643ff64e7d2e617ae42d5\" tg-width=\"640\" tg-height=\"485\"/></p><p>Moving Averages (StockCharts.com)</p><p></p><h2 id=\"id_2661705542\">Industry Headwinds, Improved Risk Situation</h2><p>NIO produces a boatload of losses and the third quarter showed investors better not expect a fundamental change in the near-term profit situation of the electric vehicle company.</p><p>NIO also had to lay off workers, a rather large 10% of its workforce, which speaks to the pressures in the industry. With that being said, though, I think the risks seem to have further decreased.</p><h2 id=\"id_1052193067\">My Conclusion</h2><p>I think the equity investment of CYVN Holdings has much deeper implications than the mere payment of $2.2 billion to shore up NIO’s balance sheet and fund NIO’s ongoing operating losses.</p><p>Middle Eastern investors from resource-rich Abu Dhabi are anchor investors looking for long-term strategic investments in fast-growing industries and they clearly see value in NIO’s long-term EV strategy. I think the deal is unequivocally positive for NIO from the points of view of liquidity, balance sheet strength, and investor confidence.</p><p>With NIO’s stock gaining new momentum following the report on Monday, I think NIO deserves a stock classification of Buy and appears ripe for a larger breakout.</p></body></html>","source":"seekingalpha","collect":0,"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>NIO: Abu Dhabi Deal Could Lead To Major Breakout (Rating Upgrade)</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; 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}\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\">\nNIO: Abu Dhabi Deal Could Lead To Major Breakout (Rating Upgrade)\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-12-26 07:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4659498-nio-stock-abu-dhabi-deal-could-lead-major-breakout-upgrade-buy><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>NIO receives a major strategic equity investment of $2.2 billion from Abu Dhabi-based CYVN Holdings.The investment boosts NIO's balance sheet and demonstrates confidence in the company's potential as ...</p>\n\n<a href=\"https://seekingalpha.com/article/4659498-nio-stock-abu-dhabi-deal-could-lead-major-breakout-upgrade-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4581":"高盛持仓","BK4504":"桥水持仓","BK4099":"汽车制造商","NIO":"蔚来","BK4548":"巴美列捷福持仓","BK4532":"文艺复兴科技持仓","BK4531":"中概回港概念","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","NIO.SI":"蔚来","BK4555":"新能源车","09866":"蔚来-SW","LU0052750758.USD":"富兰克林中国基金A Acc","BK4509":"腾讯概念","LU0320764599.SGD":"FTIF - Templeton China A Acc SGD","LU0708995583.HKD":"TEMPLETON CHINA \"A\" (HKD) ACC","BK4526":"热门中概股","BK4588":"碎股","BK4574":"无人驾驶","BK4505":"高瓴资本持仓"},"source_url":"https://seekingalpha.com/article/4659498-nio-stock-abu-dhabi-deal-could-lead-major-breakout-upgrade-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2394536552","content_text":"NIO receives a major strategic equity investment of $2.2 billion from Abu Dhabi-based CYVN Holdings.The investment boosts NIO's balance sheet and demonstrates confidence in the company's potential as a global electric vehicle player.NIO's stock price shows signs of a potential breakout above the 200-day moving average line.In light of a news release by electric vehicle company NIO Inc. (NYSE:NIO), relating to a major strategic equity investment of CYVN Holdings, NIO’s fundamental and chart situation has greatly improved.The news caused NIO’s stock price to increase by only 5% after NIO disclosed this investment, but the stock is gathering strength for a potential breakout above the 200-day moving average line.I think the deal is very significant for NIO as it is the first big deal that includes a major Middle Eastern investor which lends credibility to NIO’s business model and adds substantial cash resources that could finally push NIO over the finishing line as far as profitability is concerned.My Rating HistoryThe strategic investment deal with CYVN Holdings leads to a Buy Rating for NIO as it enhances the company’s already improving financial setup.The attraction of $2.2 billion in cash from a Middle Eastern investor shores up NIO’s balance sheet and also, and this shouldn’t be underestimated, is a show of confidence in NIO’s appeal as a major electric vehicle company with worldwide delivery potential.Abu Dhabi Seals Major $2.2 Billion Investment DealMiddle Eastern investors have not a reputation for being short on cash and this time the beneficiary is NIO whose stock price has fallen below $10 in September and remained below this level ever since. The low stock price itself may have been a reason for CYVN Holdings to invest in the company and I think the strategic equity investment could create fireworks for NIO’s stock in the years ahead.An investment fund of Abu Dhabi, CYVN Holdings, has decided to invest a whopping $2.2 billion into electric vehicle company NIO at a time of growing losses and some headwinds on the margin side of the business.With NIO’s net loss reaching 4.6 billion Yuan in the third quarter (US$624.6 million), reflecting an 11% increase compared to the same period in 2022, NIO is desperate to raise its cash levels.Though NIO’s sales kept surging in the third quarter, the company is losing a rather large amount of money each quarter: Losses declined compared to the second quarter, but this doesn’t change the fact that NIO, at least for the time being, is burning through cash quite quickly.Consolidated Statements Of Comprehensive Loss (NIO Inc)The Abu Dhabi company, which previously also subscribed to receiving NIO shares, was already an investor in the Chinese car company. CYVN Holdings now agreed to purchase 294,000,000 newly issued Class A ordinary shares of NIO at a price of US$7.50.The total value of the strategic equity investment is therefore $2.2 billion and the attraction of such a sum of money shortly after the electric vehicle company reported announced the lay-off of 10% of its workforce, speaks to the attractiveness of NIO as a long-term electric vehicle investment, at least from the perspective of this Middle Eastern investor.Deal Shores Up NIO’s Balance SheetThe deal is significant in a few ways. One, CYVN Holdings is set to own a whopping 20% of NIO after the money has been paid for the newly issued Class A ordinary shares, which will make CYVN the first Middle Eastern investor that holds such a large stake in a Chinese electric vehicle company.Two, NIO’s operations are losing money and will continue to do so at least for a couple more years. The electric vehicle maker is cash flow-negative because it needs to fund the development of new electric vehicles and has had a rather constant need to raise cash from external sources.At the end of 3Q-23, NIO had $3.3 billion in cash available to which the $2.2 billion will be added. Thus, NIO’s liquidity profile in light of ongoing losses has substantially been enhanced, thanks to CYVN Holdings’ strategic equity commitment.Assets Overview (NIO Inc)NIO Looks Ripe For A Breakout (Technical Analysis)The report of CYVN Holdings’ strategic equity investment has created positive stock price momentum for NIO which, as I said, languished below $10 since September.The Monday report about the equity investment has improved NIO’s relative strength and the stock has already broken through the 50-day moving average (resistance) line.The next challenge is the 200-day moving average line which presently runs at $9.18. I see short-term upside, based on the strength of the present momentum, at least to $10 which is also where I placed my indicative fair value for NIO.Moving Averages (StockCharts.com)Industry Headwinds, Improved Risk SituationNIO produces a boatload of losses and the third quarter showed investors better not expect a fundamental change in the near-term profit situation of the electric vehicle company.NIO also had to lay off workers, a rather large 10% of its workforce, which speaks to the pressures in the industry. With that being said, though, I think the risks seem to have further decreased.My ConclusionI think the equity investment of CYVN Holdings has much deeper implications than the mere payment of $2.2 billion to shore up NIO’s balance sheet and fund NIO’s ongoing operating losses.Middle Eastern investors from resource-rich Abu Dhabi are anchor investors looking for long-term strategic investments in fast-growing industries and they clearly see value in NIO’s long-term EV strategy. I think the deal is unequivocally positive for NIO from the points of view of liquidity, balance sheet strength, and investor confidence.With NIO’s stock gaining new momentum following the report on Monday, I think NIO deserves a stock classification of Buy and appears ripe for a larger breakout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":256066928275672,"gmtCreate":1703550641847,"gmtModify":1703579889470,"author":{"id":"3575196385895354","authorId":"3575196385895354","name":"Cedric77","avatar":"https://static.tigerbbs.com/e5ee082b05004f20d3486afedee30814","vip":1,"crmLevel":4,"crmLevelSwitch":1},"htmlText":"Hard fact :As of December 26, 2023, investing in NIO stock carries significant risks. While recent developments such as a $2.2 billion cash infusion and potential battery unit spin-off offer promise, but NIO remains unprofitable with analysts expecting a loss exceeding $2.7 billion for 2023. This raises concerns about its long-term viability, especially in a competitive EV market. Positives:&nbsp; The Chinese electric vehicle market is expected to grow significantly in the coming years, and NIO is well-positioned to benefit from this growth. The company has a strong brand reputation and a loyal following among Chinese consumers. Innovation: NIO is investing heavily in research and development, and it is at the forefront of electric vehicle technology. The company has developed its own batt","listText":"Hard fact :As of December 26, 2023, investing in NIO stock carries significant risks. While recent developments such as a $2.2 billion cash infusion and potential battery unit spin-off offer promise, but NIO remains unprofitable with analysts expecting a loss exceeding $2.7 billion for 2023. This raises concerns about its long-term viability, especially in a competitive EV market. Positives:&nbsp; The Chinese electric vehicle market is expected to grow significantly in the coming years, and NIO is well-positioned to benefit from this growth. The company has a strong brand reputation and a loyal following among Chinese consumers. Innovation: NIO is investing heavily in research and development, and it is at the forefront of electric vehicle technology. The company has developed its own batt","text":"Hard fact :As of December 26, 2023, investing in NIO stock carries significant risks. While recent developments such as a $2.2 billion cash infusion and potential battery unit spin-off offer promise, but NIO remains unprofitable with analysts expecting a loss exceeding $2.7 billion for 2023. This raises concerns about its long-term viability, especially in a competitive EV market. Positives: The Chinese electric vehicle market is expected to grow significantly in the coming years, and NIO is well-positioned to benefit from this growth. The company has a strong brand reputation and a loyal following among Chinese consumers. Innovation: NIO is investing heavily in research and development, and it is at the forefront of electric vehicle technology. The company has developed its own batt","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/256066928275672","repostId":2394536552,"repostType":4,"repost":{"id":"2394536552","pubTimestamp":1703545943,"share":"https://www.laohu8.com/m/news/2394536552?lang=&edition=full","pubTime":"2023-12-26 07:12","market":"us","language":"en","title":"NIO: Abu Dhabi Deal Could Lead To Major Breakout (Rating Upgrade)","url":"https://stock-news.laohu8.com/highlight/detail?id=2394536552","media":"seekingalpha","summary":"NIO receives a major strategic equity investment of $2.2 billion from Abu Dhabi-based CYVN Holdings.The investment boosts NIO's balance sheet and demonstrates confidence in the company's potential as ","content":"<html><head></head><body><ul style=\"\"><li><p>NIO receives a major strategic equity investment of $2.2 billion from Abu Dhabi-based CYVN Holdings.</p></li><li><p>The investment boosts NIO&#39;s balance sheet and demonstrates confidence in the company&#39;s potential as a global electric vehicle player.</p></li><li><p>NIO&#39;s stock price shows signs of a potential breakout above the 200-day moving average line.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5ddf0943a93f4ecd7825e6732cb46f8a\" tg-width=\"750\" tg-height=\"563\"/></p><p>In light of a news release by electric vehicle company <strong>NIO Inc. (NYSE:NIO)</strong>, relating to a major strategic equity investment of CYVN Holdings, NIO’s fundamental and chart situation has greatly improved.</p><p>The news caused NIO’s stock price to increase by only 5% after NIO disclosed this investment, but the stock is gathering strength for a potential breakout above the 200-day moving average line.</p><p>I think the deal is very significant for NIO as it is the first big deal that includes a major Middle Eastern investor which lends credibility to NIO’s business model and adds substantial cash resources that could finally push NIO over the finishing line as far as profitability is concerned.</p><h2 id=\"id_1842905432\">My Rating History</h2><p>The strategic investment deal with CYVN Holdings leads to a Buy Rating for NIO as it enhances the company’s already improving financial setup.</p><p>The attraction of $2.2 billion in cash from a Middle Eastern investor shores up NIO’s balance sheet and also, and this shouldn’t be underestimated, is a show of confidence in NIO’s appeal as a major electric vehicle company with worldwide delivery potential.</p><h2 id=\"id_3930972485\">Abu Dhabi Seals Major $2.2 Billion Investment Deal</h2><p>Middle Eastern investors have not a reputation for being short on cash and this time the beneficiary is NIO whose stock price has fallen below $10 in September and remained below this level ever since. The low stock price itself may have been a reason for CYVN Holdings to invest in the company and I think the strategic equity investment could create fireworks for NIO’s stock in the years ahead.</p><p>An investment fund of Abu Dhabi, CYVN Holdings, has decided to invest a whopping $2.2 billion into electric vehicle company NIO at a time of growing losses and some headwinds on the margin side of the business.</p><p>With NIO’s net loss reaching 4.6 billion Yuan in the third quarter (US$624.6 million), reflecting an 11% increase compared to the same period in 2022, NIO is desperate to raise its cash levels.</p><p>Though NIO’s sales kept surging in the third quarter, the company is losing a rather large amount of money each quarter: Losses declined compared to the second quarter, but this doesn’t change the fact that NIO, at least for the time being, is burning through cash quite quickly.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f0438fa1c25635c1817eb0bae60cd4a6\" tg-width=\"640\" tg-height=\"329\"/></p><p>Consolidated Statements Of Comprehensive Loss (NIO Inc)</p><p></p><p>The Abu Dhabi company, which previously also subscribed to receiving NIO shares, was already an investor in the Chinese car company. CYVN Holdings now agreed to purchase 294,000,000 newly issued Class A ordinary shares of NIO at a price of US$7.50.</p><p>The total value of the strategic equity investment is therefore $2.2 billion and the attraction of such a sum of money shortly after the electric vehicle company reported announced the lay-off of 10% of its workforce, speaks to the attractiveness of NIO as a long-term electric vehicle investment, at least from the perspective of this Middle Eastern investor.</p><h2 id=\"id_186804505\">Deal Shores Up NIO’s Balance Sheet</h2><p>The deal is significant in a few ways. One, CYVN Holdings is set to own a whopping 20% of NIO after the money has been paid for the newly issued Class A ordinary shares, which will make CYVN the first Middle Eastern investor that holds such a large stake in a Chinese electric vehicle company.</p><p>Two, NIO’s operations are losing money and will continue to do so at least for a couple more years. The electric vehicle maker is cash flow-negative because it needs to fund the development of new electric vehicles and has had a rather constant need to raise cash from external sources.</p><p>At the end of 3Q-23, NIO had $3.3 billion in cash available to which the $2.2 billion will be added. Thus, NIO’s liquidity profile in light of ongoing losses has substantially been enhanced, thanks to CYVN Holdings’ strategic equity commitment.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dcde653c6c6fcbdd4fbb8f650dd4f7b4\" tg-width=\"640\" tg-height=\"281\"/></p><p>Assets Overview (NIO Inc)</p><p></p><h2 id=\"id_906052014\">NIO Looks Ripe For A Breakout (Technical Analysis)</h2><p>The report of CYVN Holdings’ strategic equity investment has created positive stock price momentum for NIO which, as I said, languished below $10 since September.</p><p>The Monday report about the equity investment has improved NIO’s relative strength and the stock has already broken through the 50-day moving average (resistance) line.</p><p>The next challenge is the 200-day moving average line which presently runs at $9.18. I see short-term upside, based on the strength of the present momentum, at least to $10 which is also where I placed my indicative fair value for NIO.</p><p></p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3a70d8b4561643ff64e7d2e617ae42d5\" tg-width=\"640\" tg-height=\"485\"/></p><p>Moving Averages (StockCharts.com)</p><p></p><h2 id=\"id_2661705542\">Industry Headwinds, Improved Risk Situation</h2><p>NIO produces a boatload of losses and the third quarter showed investors better not expect a fundamental change in the near-term profit situation of the electric vehicle company.</p><p>NIO also had to lay off workers, a rather large 10% of its workforce, which speaks to the pressures in the industry. With that being said, though, I think the risks seem to have further decreased.</p><h2 id=\"id_1052193067\">My Conclusion</h2><p>I think the equity investment of CYVN Holdings has much deeper implications than the mere payment of $2.2 billion to shore up NIO’s balance sheet and fund NIO’s ongoing operating losses.</p><p>Middle Eastern investors from resource-rich Abu Dhabi are anchor investors looking for long-term strategic investments in fast-growing industries and they clearly see value in NIO’s long-term EV strategy. I think the deal is unequivocally positive for NIO from the points of view of liquidity, balance sheet strength, and investor confidence.</p><p>With NIO’s stock gaining new momentum following the report on Monday, I think NIO deserves a stock classification of Buy and appears ripe for a larger breakout.</p></body></html>","source":"seekingalpha","collect":0,"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>NIO: Abu Dhabi Deal Could Lead To Major Breakout (Rating Upgrade)</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; 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}\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\">\nNIO: Abu Dhabi Deal Could Lead To Major Breakout (Rating Upgrade)\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-12-26 07:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4659498-nio-stock-abu-dhabi-deal-could-lead-major-breakout-upgrade-buy><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>NIO receives a major strategic equity investment of $2.2 billion from Abu Dhabi-based CYVN Holdings.The investment boosts NIO's balance sheet and demonstrates confidence in the company's potential as ...</p>\n\n<a href=\"https://seekingalpha.com/article/4659498-nio-stock-abu-dhabi-deal-could-lead-major-breakout-upgrade-buy\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4581":"高盛持仓","BK4504":"桥水持仓","BK4099":"汽车制造商","NIO":"蔚来","BK4548":"巴美列捷福持仓","BK4532":"文艺复兴科技持仓","BK4531":"中概回港概念","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","NIO.SI":"蔚来","BK4555":"新能源车","09866":"蔚来-SW","LU0052750758.USD":"富兰克林中国基金A Acc","BK4509":"腾讯概念","LU0320764599.SGD":"FTIF - Templeton China A Acc SGD","LU0708995583.HKD":"TEMPLETON CHINA \"A\" (HKD) ACC","BK4526":"热门中概股","BK4588":"碎股","BK4574":"无人驾驶","BK4505":"高瓴资本持仓"},"source_url":"https://seekingalpha.com/article/4659498-nio-stock-abu-dhabi-deal-could-lead-major-breakout-upgrade-buy","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2394536552","content_text":"NIO receives a major strategic equity investment of $2.2 billion from Abu Dhabi-based CYVN Holdings.The investment boosts NIO's balance sheet and demonstrates confidence in the company's potential as a global electric vehicle player.NIO's stock price shows signs of a potential breakout above the 200-day moving average line.In light of a news release by electric vehicle company NIO Inc. (NYSE:NIO), relating to a major strategic equity investment of CYVN Holdings, NIO’s fundamental and chart situation has greatly improved.The news caused NIO’s stock price to increase by only 5% after NIO disclosed this investment, but the stock is gathering strength for a potential breakout above the 200-day moving average line.I think the deal is very significant for NIO as it is the first big deal that includes a major Middle Eastern investor which lends credibility to NIO’s business model and adds substantial cash resources that could finally push NIO over the finishing line as far as profitability is concerned.My Rating HistoryThe strategic investment deal with CYVN Holdings leads to a Buy Rating for NIO as it enhances the company’s already improving financial setup.The attraction of $2.2 billion in cash from a Middle Eastern investor shores up NIO’s balance sheet and also, and this shouldn’t be underestimated, is a show of confidence in NIO’s appeal as a major electric vehicle company with worldwide delivery potential.Abu Dhabi Seals Major $2.2 Billion Investment DealMiddle Eastern investors have not a reputation for being short on cash and this time the beneficiary is NIO whose stock price has fallen below $10 in September and remained below this level ever since. The low stock price itself may have been a reason for CYVN Holdings to invest in the company and I think the strategic equity investment could create fireworks for NIO’s stock in the years ahead.An investment fund of Abu Dhabi, CYVN Holdings, has decided to invest a whopping $2.2 billion into electric vehicle company NIO at a time of growing losses and some headwinds on the margin side of the business.With NIO’s net loss reaching 4.6 billion Yuan in the third quarter (US$624.6 million), reflecting an 11% increase compared to the same period in 2022, NIO is desperate to raise its cash levels.Though NIO’s sales kept surging in the third quarter, the company is losing a rather large amount of money each quarter: Losses declined compared to the second quarter, but this doesn’t change the fact that NIO, at least for the time being, is burning through cash quite quickly.Consolidated Statements Of Comprehensive Loss (NIO Inc)The Abu Dhabi company, which previously also subscribed to receiving NIO shares, was already an investor in the Chinese car company. CYVN Holdings now agreed to purchase 294,000,000 newly issued Class A ordinary shares of NIO at a price of US$7.50.The total value of the strategic equity investment is therefore $2.2 billion and the attraction of such a sum of money shortly after the electric vehicle company reported announced the lay-off of 10% of its workforce, speaks to the attractiveness of NIO as a long-term electric vehicle investment, at least from the perspective of this Middle Eastern investor.Deal Shores Up NIO’s Balance SheetThe deal is significant in a few ways. One, CYVN Holdings is set to own a whopping 20% of NIO after the money has been paid for the newly issued Class A ordinary shares, which will make CYVN the first Middle Eastern investor that holds such a large stake in a Chinese electric vehicle company.Two, NIO’s operations are losing money and will continue to do so at least for a couple more years. The electric vehicle maker is cash flow-negative because it needs to fund the development of new electric vehicles and has had a rather constant need to raise cash from external sources.At the end of 3Q-23, NIO had $3.3 billion in cash available to which the $2.2 billion will be added. Thus, NIO’s liquidity profile in light of ongoing losses has substantially been enhanced, thanks to CYVN Holdings’ strategic equity commitment.Assets Overview (NIO Inc)NIO Looks Ripe For A Breakout (Technical Analysis)The report of CYVN Holdings’ strategic equity investment has created positive stock price momentum for NIO which, as I said, languished below $10 since September.The Monday report about the equity investment has improved NIO’s relative strength and the stock has already broken through the 50-day moving average (resistance) line.The next challenge is the 200-day moving average line which presently runs at $9.18. I see short-term upside, based on the strength of the present momentum, at least to $10 which is also where I placed my indicative fair value for NIO.Moving Averages (StockCharts.com)Industry Headwinds, Improved Risk SituationNIO produces a boatload of losses and the third quarter showed investors better not expect a fundamental change in the near-term profit situation of the electric vehicle company.NIO also had to lay off workers, a rather large 10% of its workforce, which speaks to the pressures in the industry. With that being said, though, I think the risks seem to have further decreased.My ConclusionI think the equity investment of CYVN Holdings has much deeper implications than the mere payment of $2.2 billion to shore up NIO’s balance sheet and fund NIO’s ongoing operating losses.Middle Eastern investors from resource-rich Abu Dhabi are anchor investors looking for long-term strategic investments in fast-growing industries and they clearly see value in NIO’s long-term EV strategy. I think the deal is unequivocally positive for NIO from the points of view of liquidity, balance sheet strength, and investor confidence.With NIO’s stock gaining new momentum following the report on Monday, I think NIO deserves a stock classification of Buy and appears ripe for a larger breakout.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":23,"commentSize":0,"repostSize":2,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}