NIO: Load Up On The Dip
- The Chinese economy still hasn't fully recovered providing a tailwind for the EV companies.
- NIO started the year off with weak deliveries in January, but the company should guide to improving numbers by Q2'23.
- The stock is cheap at 1x sales, especially if the cash burn is quickly reduced or eliminated.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
Despite an initial rally in January, Chinese stocks haven't rallied for the year due to a disappointing reopen from strict covid lockdowns. The EV sector has been doubly impacted with the end of subsidies slowing deliveries to start 2023 for NIO (NYSE:NIO). My investment thesis remains ultra Bullish on the Chinese EV manufacturer set to ultimately benefit from the ongoing full reopen of the Chinese economy setting up a rally in most Chinese stocks.
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