The consistent growth of Nio stock at the moment is fascinating at the moment. The stock prices have increased to high levels this year. The present price of the stocks is $13 and there is no doubt that people are liking this stock with a prospect to reach the level of Tesla. This EV maker has the headquarters based in China and it seems to gain a significant hold on its founder country.
Nio reported the delivery of 3500+ deliveries in July which was a huge growth over the last year’s numbers. There are some issues at present for the company to deal with which include the requirement of cash and clubbed up negative margins. Investors are looking for the best opportunities to make investments in NIO stock. The trading of a higher number of stocks of Nio has made this EV making company attractive for long-term investors.
Chinese prefer local brands
Chinese people always focus on using local brands of products rather than going for imported brands. 1/4th of Tesla’s revenue is generated from China. Nio is now headed for a strong financial success despite the Covid-19 issues. China has made an announcement for the provision of the subsidiary for new-source energy vehicles for promoting the sales of EV vehicles. The country is looking for pollution-free resources for the use of energy.
Risks associated with NIO stock
Nio stock has a Chinese background and that might be an issue with some investors. In the past, the US has a robust regulatory environment than China. Tesla has established itself so well that there is always a competitive thought in the minds of people who think that no one can beat Tesla in its stream.
The time would change over time and Nio will establish itself as a top brand with an increased marketing budget when the capital expenditures of the company are high.
NIO stock outlook
The investment in TSLA or NIO stock is the debate among the stock investors. Both stocks belong to one segment but Tesla is altogether on another level. The market cap of the company is higher than many big names in the automobile sector. TSLA stock is overrated but NIO has to prove itself for the investors to trust the company to a better level. The market cap of the company will increase in the coming time and its results might create an optimistic feeling in the minds of investors. NIO is just an initiative for EV stock but is still a matter of confusion for the investors.
NIO stock appears lucrative at the time and it is worth considering for your portfolio. It is a growth stock with different unique features that could push the stock price upwards. It could be the best stock for long-term investment and could fetch the best results for the stock owners. It is preferred to keep a check at NIO and wait for the best point to buy the shares of this particular stock.