Auto companies are massive businesses that rely on scale to succeed. For instance, Ford is currently losing over $42,000 on each electric vehicle (EV) they produce, which highlights the challenging financial landscape of the industry. While NIO is making progress, scaling production is essential for success in the auto business. If NIO can maintain strong financials and build momentum for its products, it could emerge as a solid investment. However, this growth may take one or two years, and the state of the Chinese economy could impact its trajectory during that time.
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