r/nio
NIO Bears Are Always Wrong About Why They Are Right
Author argues NIO company fundamentals are excellent (profit, 112% revenue growth, BAAS success) but stock is being suppressed by Wall Street despite earnings beat.
- NIO achieved second consecutive quarter of profit with 112% YOY revenue growth and doubled car deliveries
- BAAS battery swap ecosystem is proven with 111M+ swaps, creating tangible customer value and a moat
- NIO ES8 is a sales phenomenon; company is transforming into a national clean energy giant
- Stock fell 13% after crushing Q1 earnings estimates, suggesting market does not reward fundamentals
- Author claims stock is openly manipulated and suppressed by Wall Street against retail investors
- Macro headwinds: US-Iran tensions, global economic slowdown, intense domestic EV competition
The company is not the stock and the stock is not the company.
NIO, the company, achieved their second consecutive quarter of profit, 112% YOY revenue growth and doubling car deliveries. NIO is performing miraculously well considering the macro economic factors of US attacking Iran, the global economic slowdown and intense domestic competition. The NIO ES8 is a sales phenomenon.
NIO, the company, is becoming a national clean energy giant, transforming EVs into mobile energy storage systems that help to support energy regulation of local grids. BAAS has proven itself with over 111 million battery swaps. That translates to 2,800,000,000 minutes NIO customers have saved by battery swapping. How many other tech companies are providing such a tangible, quantifiable improvement to the lives of their customers? Open AI will be valued at 1 trillion dollars, how has it benefited people's lives beyond what a Google search does?
Bears claim that NIO is a poorly run company, that NIO cars are not selling, that William Li is a terrible CEO, that the company will be forced to dilute shares, that the company is going bankrupt, that flash charging will eliminate BAAS, so many demonstrably false claims. Yet despite bears being wrong about everything with NIO the company, they are right about one thing, that NIO stock is struggling.
I am sure there are retail investors that bet money NIO would have a positive Q1 earnings report. And after NIO crushed analyst estimates, with a normal tech stock, retail investors would have been rewarded with 10%, 25%, even 45% gains considering the stock is so undervalued. Instead, NIO has fallen 13% after crushing analyst estimates for Q1.
NIO stock has become the perfect instrument for Wall Street to cheat retail investors and it's sad to see the stock so openly manipulated. Even after two consecutive quarters of profit and earnings beat, the stock is suppressed. When will it end is anybody's guess at this point. Ultimately, the best solution might be for NIO to remove their listing from the NYSE and force naked shorts to cover.
Its a good opportunity to buy more. I did buy alittle more yesterday as I could not resist. We have been through this so many times that its very obvious now
Within a month its going to be above $7. They don’t controlled the upside and shock out weak hands. They will for sure bring it down again like before but they can’t keep it down forever.