r/nio
⚡NIO-RIVIAN .Market caps
NIO's market cap is much lower than Rivian's despite better scale and revenue, highlighting a major valuation distortion.
- NIO has a larger operational scale and higher revenue compared to Rivian.
- NIO has a more developed ecosystem.
- Current market cap of $14.2B represents a significant valuation distortion and undervaluation.
⚡NIO-RIVIAN .Market caps .A comparison of market capitalization between Rivian and NIO: $22.7 billion versus $14.2 billion. A difference that many investors find difficult to justify considering NIO's operational scale, revenue, and developed ecosystem. The image illustrates one of the most striking valuation distortions within the global electric vehicle sector.
Key word: Chinese
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Which China, the factory of the world?
your dreamland
Geopolitics.
NIO Will skyroquet next month 1st July deliveries over 50k
That means they will be stuck in the us lol. Their total addressable market is people who live in the us + want outdoor suvs + people who don't want a tesla, Toyota, Hyundai, Ford, gm.
If they cannot compete globally as an automaker, they will sell less in volume which lowers margins.
I think you need to reread that .
That's not true. Most Westerners know four Chinese companies (Alibaba, JD, Nio, and at most a couple more), but I follow dozens of Chinese companies. Among them, several at the top of my watchlist trade at P/E ratios of 150x, 40x, 450x, 120x, etc. The Chinese stock market is full of enormously attractive companies that are priced very high because their potential is well known. Nio's misfortune in the stock market (and that of the Chinese EV sector's newer companies in general) is that they left China and became known at the wrong time. Western instruments and funds are controlling them and will hold onto them until the very last day possible.
Chinese onshore markets are doing fine
Almost nothing on Hang Seng gets fair value
What I am struggling to understand is how shorts keep us down?
Also, it can't be that institutional investors don't see the growth trajectory and the competitive advantage from the power swap infra.
What is missing for us to break out? 🚀
For low volume stocks, it’s easier to control the price as they can just trade among themselves to make the price seemingly come down.
Why do they do that? Because there’s money to be earned from selling options to the retails who want to gamble.
Well, I get that and thanks for the answers. But this means at the same time that people have cash to burn, if this goes the other way.. or they are betting things won't...
Geopolitics disaster, nothing else
No competition in a small market vs competition is a huge market.