NIO: Fundamentally Weak And Overvalued


  • NIO’s operating losses deepen as deliveries increase, making it difficult to adjust pricing and compete with Tesla’s price war in China.
  • NIO’s pricing advantage in high-end models is overshadowed by its lack of brand strength compared to competitors.
  • Recent measures from the White House included introduction of 100% border tax on Chinese EVs, which significantly undermined NIO’s export potential.
  • The valuation does not look good as there is a 34% downside potential.

NIO logo and the Nio"s user center, NIO House

Andy Feng

My thesis

NIO (NYSE:NIO) currently experiences multiple challenges. The company’s operating losses deepen as it ramps up deliveries, meaning that pricing for its vehicles should be adjusted. However, increasing prices is highly likely to be impossible as the competition is

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