NIO: Poised To Struggle Further

Summary:

• NIO remains fundamentally weak with persistent unprofitability, deteriorating net income, and a shrinking cash position, leading to a Strong Sell rating.
• Intensifying competition from legacy automakers, Tesla, and other Chinese EV brands further undermines NIO’s market position and growth prospects.
• Intrinsic value analysis suggests NIO is overvalued by around 24%, with a calculated intrinsic value per share of $3.36.
• Potential positive catalysts like the NIO MENA joint venture and Mastercard partnership are unlikely to offset the company’s significant fundamental issues.

My thesis

Despite the October share price spike, NIO (NYSE:NIO) currently trades 11% lower than it did when I shared my previous bearish call. NIO remains fundamentally weak, and I am still very pessimistic about the

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