Can I buy NIO stocks today?

Nio (Nio 3.59%)) Since IPO in 2018, it has become a very fluctuating stock. The Chinese manufacturers of electric vehicles were released at $ 6.26 per share and soared to $ 10 times that of 10 times during the purchase of MEME stocks in February 2021.

But at this point of writing, NIO stocks are traded at about $ 5 per week. Bulls retreated as delivery was cooled down, margins decreased, and triggered steep losses. Can you bring some parts of stocks that don’t love this IPO price?

Nio’s Eve Concept Car. Image Source: NIO.

Why did the NIO go round trip at the IPO price?

NIO produces a wide range of electric sedans and SUVs. Replacable batteries are differentiated from competitors, and faster alternatives to traditional chargers can quickly replace them in their own battery swap stations.

The NIO provided the first car in 2018, and the annual delivery was nearly 11 times from 2019 to 2024. However, after doubling the annual delivery in 2020 and 2021, it was difficult due to supply chain constraints, strong competitiveness and China’s economic speed in 2022 and 2023.

Data Source: NIO. yoy = over a year.

NIO’s annual vehicle margin, which reached a 20.2%record in 2021, decreased to 13.7%in 2022 and priced power in 2023 to 9.5%. Annual net losses have more than four times from 2021 to 2023. All these problems drove the bull with trade tensions and interest rates.

What is the next NIO?

After two years of slowdown, NIO’s delivery growth was accelerated in 2024. The business has been stabilized as it has increased its market share in China and expanded in Europe.

The recovery was led by the launch of the sub -end onvo L60, similar to the stable sales of ET sedans, ES SUVs and EC crossovers. Tesla‘S (NASDAQ: TSLA) Model Y, but starts at 149,900 yuan ($ 20,646). It is also expanding throughout Europe, even if it faces high tariffs on the Chinese EVs in the region.

Despite its pressure, however, NIO’s quarterly vehicle margin was stabilized in 2024, up from 9.2%in 1Q to 12.2%in the second quarter and 13.1%in the third quarter. This figure is expected to increase to 15%when posting an import report in the fourth quarter on March 21. I think that the average selling price is greatly offset by the cost of low material costs and the increase in sales of China’s premium vehicles (including ET7 Executive Edition sedans).

In December, NIO launched Firefly, a small electric hatchback for buyers of small vehicles. Bmw‘S (OTC: BAMXF) Start price of 148,800 yuan ($ 20,495). It will also launch Firefly in Europe this year, and you can localize some production to the EU to respond to tariffs in the future.

Can Nio’s stocks pop out again?

Assuming that NIO’s shipping and vehicle margin continues to increase, analysts expect the annual net loss to increase the profit from 2023 to 2026, with a combined annual growth rate (CAGR) of 30%from 2023 to 2026. The NIO will soon not benefit, but it is still subsidized by the Chinese government, and it has been equal to $ 6 billion in cash at the end of the end.

The NIO is still trading less than 1x of sales of 97.6 billion yuan ($ 13.5 billion) in 2025, with its corporate value of 76.9 billion yuan ($ 10.9 billion).

The NIO’s evaluation will be under pressure from the continuous tension between the United States and China, the threat of high tariffs and the cooling EV market. However, as the NIO expands its business, it can be reevaluated as a growth stock if this pressure is convenient, providing large multi -vaguors at the current price.

Therefore, it is still too early to know if the NIO can “set you for a lifetime” in the long run, but the feat of one stock can be a high risk and reward for bold investors. The NIO did not prove that business models could create sustainable or consistent profits, but it is an attractive stock if trade tension is expected to preheat the Wayne and EV markets.