r/nio
$NIO - Sleeping Giant EV Play | Pt. 2
Author adds to NIO, citing Q1 profitability, in-house 5nm smart driving chip, and rapid battery swap growth as key catalysts.
- Achieved profitability in a historically weak Q1 with improving cash flow and YoY revenue growth.
- Developed in-house 5nm smart driving chip with four times the computing power of Nvidia's Orin-X.
- Battery swap business is growing rapidly, serving over 1 million customers daily with a strong competitive advantage.
Hello Reddit, it’s been about four months since my last $NIO thesis, and as of today, the stock has climbed around 20% since then.
I intentionally waited for the recent pullback before making this post, as the stock hit highs close to $7 in mid-April
Today, I increased my $NIO stake by 5.3% at a share price of $5.54, as I still believe this stock is a sleeping giant. A number of catalysts continue to build pressure that I think the market will eventually have to reflect, and despite recent highs, I believe the real move is still ahead…
Catalysts
• 2nd Consecutive Profitable Quarter
Today, Nio posted profitability in a historically weak first quarter. Cash flow is improving, and revenue continues to grow YoY. Nio is starting to harvest the fruits of its labour, and margins will start to look juicier on paper
• Shenji NX9031
The world’s first automotive-grade 5nm smart driving chip developed in-house by Nio, boasts roughly four times the computing power of NVIDIA’s Orin-X. Nio has already developed over 550,000 units, and honestly, this is the part that excites me most… if they can commercialise the chip, it could give Nio a real foot in the door in the semiconductor space
• Nio Power
Battery swap is still growing rapidly, with over 110 million total swaps completed and more than 1 million customers served per day. The ability to get a fully charged battery in under 5 minutes remains Nio’s biggest competitive advantage. In my opinion, this USP alone is one of the main reasons Nio isn’t going anywhere anytime soon… in a fast-moving world where time is precious, people will pay a premium for convenience
There are many more reasons why I believe $NIO is a sleeping giant… undervalued technicals, increasing institutional interest, sales growth, partnerships, and more. That said, I’ll wrap this up here
I still personally have an EOY PT of $40 for $NIO, and I genuinely believe the stock won’t trade much below $5 again… this recent drawback feels more like a last-chance flash sale before the next major uptrend
Disclaimer: None of this is financial advice, just my personal perspective as an investor.
I've invested into this company heavy, 15k shares. I have shares at $50 and i have shares at $4. My average is about $8. With that said, despite all positive news, growth, delivery numbers etc etc, since IPO and slight growth it was downhill from there. I'm very realistic, and educated about their marketing and growth model, but its easy to become very pessimistic when you see the company sgowing lower and lower valuation/share price (incentive of all this), year after year! Every single time there is a new excuse why the company didn't do well, and when it does the stock drops like a rock. With this pace, anyone will become very deincentivised.
5k shares at $6.
Yeah I think we’re the same person lol 16k shares at just under $7.
Why did people mention this is not financial advise?! You shouldn’t trust anyone opinion when we have a person in office that’s playing the market with tweets. Idk what our future is going to look like.
This is a bunch of BS. Who is keeping this stock down and why. It’s Because NIo is KING The Chinese Tesla is super powerful, This is a great stock that is under valued. We Are power NIO power all day long.