NIO Stock better than Tesla for the long term? NIO company analysis. China EV maker.
Guys I am not unbiased. I have a position in this stock
I was a NIO skeptic at first and to some degree still am a skeptic but I have continued to add to my position over the last 2 years. And now I feel they have turned a corner. Towards the end of the video I’ll share with you the two biggest reasons I feel that NIO will succeed long term. It has everything to do with Guanxi and Tesla.
The negatives
NIO – The Tesla of China. But it is not the Tesla of China. TESLA is!
Tesla sells more in China than NIO
NIO claims to make comparable to Tesla for half the price, I am not sure the companies should even be compared. Tesla sells you a great car and driving experience but what NIO sells is you significantly different. We’ll get into that later
Tencent and Baidu Invested in it, but that does not necessarily inspire me with confidence as they could simply be looking to extract value from the company
NIO Doesn’t make its own cars manufacturing is outsourced like Apple.
China has a long history of fraud and scandals on US capital markets and the accounting situation can only be described as opaque.
The fact that most Chinese stocks trade at a discount compared to their U.S. competitors is partly due to the fact that American investors don’t fully trust Chinese numbers. If China continues to allow its companies to deceive American investors, it will have an increasingly difficult time tapping the U.S. equity market.
2nd quarter 2020 results
Far better than expected!
NIO delivered 10,331 vehicles in the three months ended June 2020, exceeding quarterly guidance. NIO delivered 3,740 vehicles in June 2020 setting a new monthly record representing a strong 179.1% growth year-over-year. Both numbers were significant improvements over NIO's dismal year-ago results, further evidence that the company is back on track after running dangerously low on cash earlier in 2020.
