Why Nio Stock Is A Buy Now More Than Ever

Ford has been public with its plans for an electric F-150 and Mustang. And GM has even gone as far as committing to zero gas-powered vehicles by 2035.

The market has seen these corporate efforts and pumped the Ford and GM stocks 66% and 44% respectively in the last year.

That's great news for investors holding these legacy carmakers. But if you're looking to get the most out of this industry, you're more likely to get that from pure EV stocks like Nio.

Here's what Nio offers that legacy carmakers can't.

Why Nio Stock Is a Buy Right Now

Nio is not only one of the biggest EV makers in the world, but it's also a contender to lead self-driving cars down the line.

New EV stocks can be looked at more as technology companies than their legacy counterparts. The whole car is a computer rather than an engine, so the ribbon goes to the company that can make the smartest car under the most innovative business model.

Nio could very well be that.

The company just announced its long-awaited battery-swap service, or Battery-as-a-Service (BaaS). Customers will be able to trade in their empty EV batteries for new ones. This will also make the cars themselves cheaper, sold without batteries.

Nio also wants to ensure 90% of customers live within two miles of a Nio "swap station" by 2025. That will require a lot of work, as that number is currently 30%. But crazier things have happened.

Finally, Nio has done a fair job avoiding the Chinese stock sell-off lately. Despite the Chinese government "cracking down" on Chinese companies trading on the NYSE, the Nio stock price has been more resilient.

Yes, it's down 15% since June 30. But it's recovered from its lowest lows and still hangs above its 50- and 200-day moving average. The stock even went through a death cross – when the 50-day average is below the 200-day – but is even recovering from that.

China's crackdown has been mostly against software platforms, not automakers. The crackdown also wasn't much of a crackdown at all – so far, it's a basic cybersecurity audit.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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