Nio Share Price Forecast December 2021 – Time to Buy NIO?
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Shares of Chinese EV maker Nio (NYSE: NIO) are in the red today, after closing at $29.63 as of December 28th (19:59 EST). The company has grown significantly since its inception in 2014. It has launched its first production model in 2018 andhas delivered 156,581 vehicles so far. Of these, the company delivered 80,940 vehicles in 2021 alone increasing its year-to-date deliveries through Nov. 30 by 120.4% year over year.
Nio – Technical Analysis
According to the financial statement released by Nio, the company’s market cap is at $48.549 billion with total assets worth $10.679 billion. Revenue for 2020 was at $2.36 billion with a profit margin of -34.51% compared to $1.13 billion in 2019.
Moving averages such as Exponential Moving Average (10)(30.65), Simple Moving Average (10)(30.14), Exponential Moving Average (20)(32.48), Simple Moving Average (20)(32.49) and Exponential Moving Average (30)(33.86) are indicating a sell action. Oscillators such as Relative Strength Index (14)(35.23), Stochastic %K (14, 3, 3)(28.95), Commodity Channel Index (20)(−79.66), Average Directional Index (14)(933.96) and Awesome Oscillator(−6.04) are neutral.
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Recent Developments
Nio currently sells the ES8, which is a six- or seven-seat SUV; the ES6, a five-seat SUV; and the EC6, a five-seat coupe SUV. The ES6 was the top-selling model this year. The company plans to three models in 2022. The ET7, a luxury sedan is expected to be delivered by the end of March next year. Nio has also revealed a midsize sedan called ET5, whose deliveries are expected to commence in September 2022. Outside of China, Nio started deliveries of the ES8 in Norway in September, with plans enter five more countries in Europe next year.
The company currently faces tremendous competition from EV start-ups as well as legacy car companies. It will have to use quality products, cutting-edge technology, and a strong network of swapping and charging stations to tackle this competition. The ET5 features a digital cockpit with AR and VR technologies. It also comes with a monthly subscription for autonomous driving updates, and various battery options from a 75-kilowatt-hour (kWh) standard range battery to a 150-kWh battery.
When it comes to charging infrastructure, Nio has installed 700 battery swapping stations so far, more than 3,000 fast chargers, and 3,319 destination chargers across the country and over 430,000 third-party charging stations. It hopes have over 1,300 battery swap stations, 6,000 fast chargers, and 10,000 destination chargers by the end of 2022.
Should You Buy NIO Shares?
Investors interested in Nio have to be aware of a few risks. For instance, the ET5 sedan’s range may not really match optimistic Chinese testing results. It is only expected to outperform its Tesla rival with the highest available level of battery pack installed. However, the model does have the features necessary to compete on an equal footing with the Tesla Model S Plaid, while being much cheaper. Nio can get a competitive edge with its rapid “back on the road” battery swap feature, and its autonomous driving.
Nio has already started to expand its production capacity to meet the growing demand for its cars. Io has started building a second manufacturing facility at NeoPark in Hefei which is expected to become operational in the third quarter of 2022. The company’s market capitalization looks better than that of Lucid or Rivian, both of which have very little sales history. Based on this, now is a good time to add Nio shares to your portfolio.
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