NIO Share Price Forecast June 2021 – Time to Buy NIO?
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Shares of NIO (NYSE: NIO) saw a 5% decrease last Tuesday, causing many investors to panic. However, the shares are back up today after slipping for three straight sessions recently. It is currently experiencing a five-week rally, which is why it is back on the dashboards of investors.
NIO – Technical Analysis
NIO’s financial statement reveals a market cap of £70.72 billion with an enterprise value(MRQ) is £56.134 billion. It earned a revenue of 2.36 billion with a profit margin of -34.51%. This is an increase from 2019’s revenue of £1.13 billion.
Over on the technical side, Oscillators for NIO such as Williams Percent Range (14)(−3.34), Stochastic RSI Fast (3, 3, 14, 14)(39.09), Bull Bear Power(4.44) and Ultimate Oscillator (7, 14, 28)(54.75) are all pointing towards neutral. On the other hand, Moving averages such as Hull Moving Average (9)(46.17), Volume Weighted Moving Average (20)(44.76) and Simple Moving Average (200)(41.36), point towards buying.
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Recent Developments
NIO has recently invited China-based journalists to its NIO Power Day event, to be held on July 9th. NIO Power includes the company’s charging network, its network of battery swap stations and all related services such as mobile charging cars and home chargers capable of assisting stranded NIO car owners.
NIO has been expanding beyond its home market of China, with an increased focus on electric vehicles. It announced the expansion of its EV market in Norway in May this year. Overall the NIO stock is somewhat moving in the right direction, but falling well below 2021 highs. However, the company is actively exploring global expansion opportunities which can catalyze its long-term growth.
Should You Buy NIO Shares?
Investors who are normally interested in electric vehicle manufacturers have become used to companies using big day events to reveal new products and services, as seems to be the case with NIO. However, the excitement isn’t exactly warranted in this case. The company has informed us about the acceleration of the rollout of its new battery swap stations. Apart from this, no big news should be expected from the July 9th event. Investors should probably wait till NIO reveal its 2nd quarter results, which is likely to occur in early to mid-August.
NIO can be a compelling addition to your portfolio, based on its record vehicle deliveries on the back of the global chip shortage. Its Battery-as-a-service approach has really provided a competitive advantage over its EV competitors. However, some of the concerns regarding this company revolve around the level of competition it is going to face in the following years, which include Chinese EV makers such as BYD, Xpeng Motors and SAIC Motors. The ongoing global chip shortage could also continue to impact NIO, which is expected to last till 2023. After considering everything NIO isn’t offering an attractive risk-reward proposition right now to warrant investor interest.
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