NIO: Looking For A Breakout
- NIO Inc. reported mixed March monthly vehicle deliveries of 10,378.
- The Chinese electric vehicle company still forecasts vehicle deliveries reaching a goal of 250K this year, which appears aggressive after only 31K in Q1.
- NIO stock is cheap at 1x EV/S multiples, with major multiple expansion possible on hitting breakout EV delivery targets for the year.
The Chinese electric vehicle ("EV") space continues to struggle to rebound from covid restrictions and the lack of subsidies that caused a rush to purchase vehicles at the end of 2022. NIO Inc. (NYSE:NIO) has fallen flat to start 2023, with sales growth not matching internal targets, though the EV company is making progress. My investment thesis remains ultra-Bullish on the breakout potential in the sector, though NIO continues to struggle to grow beyond prior sales peaks.
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