Photo Source: Sam Robson, the Motley Fool UK
When he rode up, Nio (NYSE: Nio) has been disappointed in many recent investors. NIO stock is now down 30% than at the beginning of the past year. It is 93% below Its 2021 spaces, which should now appear as a distant dream of other long-term shareholders.
What went wrong – and should I even think by adding a nio to my portfolio with the hope of future benefits?
2021 compared to 2025
Looking back, that previous price looks funny for me. It was based on the highest level of hope that the electric car market could grow and what shared the market union can find it. From modern-day view, it looks so good.
However, you have been given a great fall of nio stock, the company now lists the market fare below $ 9BN.
September, the company had money balance and funding, restricted, temporary investment and long-term pharmaceutical investments that place about $ 6bn. That suggests the market currently provides the intensity of the $ 3BN business value to $ 4bn.
Nio has some real power
That is a large number. Anyway, might there be a value here?
NICO has established product standards and the high end I think can help you to install from some ranks at the bottom of the decisive pressure. Another possibility of the firm of Firm has its battery exchange technology, which helps to compete important concerns for many vehicles for many car users: Distance.
Last year he saw 221,000 vehicles, or more than 4,000 each week on average. That is exposed to the growth of 39% per year. December saw growth in 73% per year.
Yes, those numbers are part of the rival rivals Tesla. But they have the process.
Also, Tesla deliveries last year was discovered a little. In comparison with that, nio sales are burning.
Would money ever be done to work?
But with the Tesla, unlike nio, it is the business model that has been proved to be consistently (although it has taken many years to reach this point).
In contrast, the third quarter of the past year, nio saw the full-on-NATAS losses growing 11% to $ 721m.
The quarter statement was not so painful as using the phrase “Cash burn“However, the worst business and in three rooms are closer to 1 billion curtains in three months, even the 100b lot of $ 6bn may be visited over a few years.
That suggests the danger that the company may need to raise a liquidity fee for several years, as possible to reduce shareholders in the process.
Everything doesn’t get lost!
As a shareholder of a new shareholder, you concern me.
But my powerful Anxiety is a lack of profitable business model.
However, the rivals have shown it can be done. FIRST, NIO sales now is a big deal and grow. If sales continues to rise and a credible practice becomes unable to allow the establishment of the inventory, I think nio stock can travel on top of its current level – maybe.
But when the loss is always great, because now I’m not ready for investment.
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