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NIO Inc ADR NIO

Morningstar Rating
$4.68 +0.06 (1.30%)
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Company Report

Tariffs of Up to 25% on Chinese EV Manufacturers Won’t Change Our Growth Outlook

Shares of Chinese electric vehicle manufacturers fell 4%-9% on June 12 in Hong Kong on news that the European Commission will provisionally apply additional tariffs of up to 25% on imported electric vehicles made in China starting next month, compared with the 10% standard import duties on EVs. The European Union launched an investigation in October 2023 into subsidies given to EV automakers in China. The EU accused Chinese automakers of unfairly benefiting from incentives and support from the Chinese government and such subsidies have raised overcapacity concerns. The commission alleged that subsidized car imports posed an economic threat to the healthy development of the EV industry in the EU.

Price vs Fair Value

NIO is trading at a 722% premium.
Price
$4.68
Fair Value
$5.10
Uncertainty
Very High
1-Star Price
$87.78
5-Star Price
$1.15
Economic Moat
Fcwf
Capital Allocation
Nylsfncc

Bulls Say, Bears Say

Bulls

Nio has successfully built its premium brand image, which will differentiate the company from its mass-market competitors and generate extra pricing power for the company’s electric cars.

Bears

Escalating battery cost in 2022-23 has put Nio’s vehicle margin under pressure. It also derailed the industry projection of cost parity of NEVs with ICEs, affecting NEV adoption in the long run.

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News

Trading Information

Previous Close Price
$4.62
Day Range
$4.604.80
52-Week Range
$3.6116.18
Bid/Ask
$4.69 / $4.70
Market Cap
$9.77 Bil
Volume/Avg
300,833 / 51.6 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
1.10
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Nio is a leading electric vehicle maker, targeting the premium segment. Founded in November 2014, Nio designs, develops, jointly manufactures, and sells premium smart electric vehicles. The company differentiates itself through continuous technological breakthroughs and innovations such as battery swapping and autonomous driving technologies. Nio launched its first model, its ES8 seven-seater electric SUV, in December 2017, and began deliveries in June 2018. Its current model portfolio includes midsize to large sedans and SUVs. It sold over 160,000 EVs in 2023, accounting for about 2% of the China passenger new energy vehicle market.
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Stock Style Box
Large Value
Total Number of Employees
32,820

Competitors

Valuation

Metric
NIO
TSLA
XPEV
Price/Earnings (Normalized)
88.29
Price/Book Value
3.3811.941.66
Price/Sales
1.108.881.67
Price/Cash Flow
58.55
Price/Earnings
NIO
TSLA
XPEV

Financial Strength

Metric
NIO
TSLA
XPEV
Quick Ratio
0.861.040.92
Current Ratio
1.151.721.50
Interest Coverage
−44.7938.06−36.04
Quick Ratio
NIO
TSLA
XPEV

Profitability

Metric
NIO
TSLA
XPEV
Return on Assets (Normalized)
−19.20%9.74%−11.72%
Return on Equity (Normalized)
−100.24%16.96%−25.81%
Return on Invested Capital (Normalized)
−36.91%13.43%−20.47%
Return on Assets
NIO
TSLA
XPEV
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