NIO

Analysis of NIO share price

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If you want to trade the Nio share price, we can help you with your analyzes of this value. To put in place relevant analyzes of this action, you must know this group and its activities perfectly, which we will of course tell you about in detail here. But you must also pay close attention to the environment of this business, whether it is its competitive environment or potential allies. We will therefore also look at the direct competitors of this group and its recent partnerships. We will also offer you a historical reminder of the facts that have marked the last years of this group and some advice to carry out your fundamental analysis of this value taking into account the most relevant and influential publications and news.

Elements that can influence the price of this asset:

Analysis N°1

The first factor to analyze before taking a position on the Nio share price is undoubtedly the economic health of the automotive sector. The higher the orders and sales of new vehicles, the more chances Nio will have of increasing its revenues and vice versa.

Analysis N°2

We will also keep an eye on the group's investments in research and development. The vehicles developed by Nio are indeed vehicles that want to be innovative with connected or ecological cars. Exits or announcements of the release of new vehicles will be good indications of an increase in activity and title.

Analysis N°3

Competition in this segment of innovative vehicles will also have a direct impact on the ability to change the Nio share price. You must therefore scrutinize the sector as a whole and follow the innovations of other car manufacturers working in similar segments.

Analysis N°4

The Nio group is also subject to communicating regularly about its growth and development strategies. We recommend that you closely follow these publications and the expectations of analysts specializing in this sector.

Analysis N°5

In the same way, it is advisable to regularly take note of the financial results of this company. This of course concerns the annual balance sheet with turnover and net profit or even the quarterly and half-yearly results. The order book can also be an interesting indication of future deliveries and therefore future income for this business.

Analysis N°6

Finally, attention will also be paid to the regulations concerning the export of vehicles and compliance with the standards applied by potential importing countries

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General presentation of NIO

We now invite you to learn a little more about the Nio company and its specificities. A good knowledge of this group and in particular of its activities, products or services, is indeed essential if you want to better understand its economic environment, its challenges and the threats it might face in the future. Here is some specific information about it.

The Nio Inc group is a Chinese company specializing in the design, manufacture and sale of intelligent and connected electric vehicles. More specifically, this company specializes in the manufacture of autonomous driving electric vehicles integrated with new generation technologies and artificial intelligence.

Among the flagship models of this company and brand, we find in particular the ES8 which is an electric sport utility vehicle SUV which is made of aluminum alloy and which offers seven seats. This vehicle is notably equipped with an electronic propulsion system capable of accelerating from 0 to 100 km / h in just 4.4 seconds with a range of 355 kilometers and a maximum range of 500 km on a single charge.

But this is not the only activity of this Chinese group which also carries out activities concerning the supply of vehicle charging solutions including for example the Power Home, Power Swap, Power Mobile and Power Express services. The other services offered by Nio concern liability insurance services, automobile damage insurance through third-party insurers and partners, repair and routine maintenance services, courtesy cars during long repairs. duration and maintenance as well as road insurance.

Analysis of NIO share price
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The major competitors of NIO

Now let's explore the competitive environment of the Nio group. Given that this company is trying to position itself on the world market for electric vehicles, you must closely monitor the other car manufacturers that stand out in this segment. They are:

Tesla 

This American manufacturer is notably distinguished from other electric manufacturers by the aesthetic quality of its vehicles and by its rather high-end classification.

BYD

This is another Chinese manufacturer that has become one of the biggest sellers of electric vehicles in the world and a former manufacturer of batteries for mobile phones and cameras. It also has one of the largest automotive battery factories in the world.

Renault-Nissan

This Franco-Japanese manufacturer is one of the leaders in this sector in Europe, in particular thanks to its Renault Zoé model or the Nissan Leaf which were first sales in 2018.

BAIC

Another Chinese manufacturer that produced three of the five best-selling electric vehicle models in the country in 2018. Its best known model is the EC 180.

BMW 

The German top-of-the-range manufacturer with its i3 model succeeds in profiting from its investments in the electric.

SAIC

 Another Chinese in this ranking, which is distinguished this time by the fact that it was the first manufacturer in the country to release a 100% electric SUV and which produces a vehicle equipped with 5G technology.

Geely

This other Chinese manufacturer is a former manufacturer of refrigerators before launching the Geometry brand, 100% electric and which will offer no less than 10 models by 2025. He is notably responsible for producing the new Daimler electric Smart.

Hyundai-Kia

The South Korean manufacturer, which had fallen behind in electricity, has since caught up well with the opening of a production plant in Indonesia. This group also develops vehicles running on hydrogen.

Volkswagen 

The German manufacturer plans to develop and market more than 70 models of electric vehicles.

Chery

Finally, another Chinese has just closed this ranking. He is the electric pioneer in China, who notably sold the best-selling model in 2011, 2012 and 2013.


The major partners of NIO

Then discover two partnerships recently established by the Nio group. It is important to understand the interest of this type of alliances both for the growth and development of the Nio company but also for the likely growth of its stock market action.

Mobileye

The first partnership we will talk about was set up in 2019 by Nio with the Mobileye group and concerns the industrialization of the production of autonomous vehicles in China. The two companies have thus teamed up in order to achieve this industrialization of the production of level 4 SAE autonomous vehicles with the main objective of then marketing them to the general public. If this partnership initially targets the Chinese market only, it also plans to extend the marketing of these vehicles to other markets with exports to the rest of the world.

Total Energy Ventures

Another important partnership that the Chinese group Nio recently set up was with the subsidiary of the Total group "Total Energy Ventures". Total Energy Ventures is indeed the investment fund of the oil group Total. He signed a cooperation agreement with Nio in the field of mobility in China, which notably concerns electric vehicles, autonomous driving and intelligent systems, connected vehicles and mobility services. Thanks to this partnership agreement, Total will be able to be part of the dynamic innovation ecosystem specific to the mobility sector in China and to forge strong links with the major players in innovation in the country. The Total Energy Ventures investment fund will thus bring value through its global investment expertise and the Total group will bring it through its integrated low carbon global solutions. The goal is of course here for Total to improve its integration and positioning in the innovation sector in China.

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The factors in favour of a rise in the NIO share price:

To understand how the NIO Group could grow and therefore predict how its stock market share price could move over the medium and long term, it is crucial that you are familiar with this company’s current situation together with its major strengths and weaknesses.

Concerning the major strengths of the NIO Group that could enable it to increase its development in the coming years we particularly note the following factors:

  • Firstly we note that among the major advantages of this company it benefits from the financial assistance and support of the Chinese government, notably for research and development as well as its ability to respond to the users’ network requirements. This enables the company to make substantial savings and thereby benefit in terms of efficacy.  This governmental support also enables the group to avoid the restrictions relating to the registration plates of electric vehicles even though normally these restrictions have already been abolished.  In the same way, the Chinese government has implemented strong entry barriers against electric vehicle manufacturers and encouraged less but more competitive companies. Therefore, the manufacturers that wish to use the production capabilities of other companies need to invest in research and development in China for at least 3 years and for a sum of at least 4 billion yen which is roughly equivalent to 580 million dollars. 
  • Another advantage of the NIO Group relates to the fact that this company was the first to perfect an engine for high class electric vehicles at a competitive price. We expect to see a strong growth in the Premium and SUV sectors for the current period to 2022. In 2019 we observe a significant growth in the sale of luxury vehicles throughout this sector. Relating to the Chinese market, and according to expectations of experts in this sector, we know that the sale of electric vehicles should reach around 3.6 million vehicles in 2022.  
  • This company’s growth perspectives in the new generation vehicle sector are also generally optimistic and could enable this group to gain in terms of market share. This particularly concerns the autonomous driving vehicle sector.
  • Still on the subject of the NIO Company’s strong points we can also mention the services available from this company which are of a particularly high quality and declared by consumers to be excellent.
  • We could also note the fact that the NIO share price is quoted on the United States stock markets. This means that the company can benefit from supplementary financing as well as contributing to boost the recognition of this brand on an international level. 
  • Another strong point of the NIO Group is that it doesn’t operate directly from factories which enables it to achieve significant savings on costs. 
  • This group also benefits from its rechargeable NIO Power network that enables it to generate revenue from other electric vehicle manufacturers and thereby further increase its profitability.
  • Finally we could also mention the strategic partnerships strategy that NIO has implemented with the aim of positioning itself in the maximum of markets and thereby reach a larger client range.  
The factors in favour of a drop in the NIO share price:

Let us now examine the major disadvantages of this asset, or the weak points of the NIO Group, that could negatively influence the medium or long term profitability:

  • Firstly, the liquidity of this group represents a certain significant anxiety as there is little transparency with certain factors. 
  • We should also mention the fact that NIO is still relatively unknown in China as well as the rest of the world. It is clear that significant investment in marketing is necessary for this company to grow.
  • The research and development investment expenses are also very high and their eventual success is not guaranteed. The same is true for the significant personnel costs.
  • Still on the subject of this company’s weak points we are disappointed that this is still a relatively new company and up to now has not sold sufficient vehicles to assure its reputation.
  • We also note that certain new Chinese laws can cause prejudice to this company notably relating to the regulatory monitoring requirements.
  • The weak growth of the electric vehicle market worldwide and the continuing reticence of consumers to buy these vehicles is not favourable towards NIO and the competition it faces from cheaper traditionally fuelled vehicles remains strong and impedes this company’s growth.
  • Finally, the last current major disadvantage of the NIO Group concerns the trade war between China and certain other countries around the world from which come certain products necessary for this group’s production such as copper or high performance microchips. 
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

When was the Nio company created?

The Nio company is quite recent because it was created in 2014. It is the president of Bitauto and NextEV, William Li who is at the origin. This company quickly specialized in the construction of electric vehicles with a first model, the Nio EP9 which is an electric supercar of 1341 horses. So there is little history about this business and you will have to settle for a few years of exercise.

Which companies have invested in Nio?

Several companies have bet on the success of Nio and have bought shares in this company. This is particularly the case of the companies Tencent, Temaesk, Baidu, Sequoia, Lenovo and even TPG who invested in this value just after the launch of its first model of electric vehicle. Later in 2018, the British investment company Baillie Gifford bought more than 11% of the shares in this group.

What are the vehicle models that the Nio group has already put on the market?

After the launch of its very first model, the Nio EP9, shortly after its creation, the company Nio put on the market several other models and series. In 2017, it notably released its very first production model, the ES8, which is a 100% electric SUV. A year later, in 2018, the Nio group presented on the market its second model with the ES6 which is also an SUV but this time compact and still electric of 4.85 m.

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