This report analyses NIO Inc’s stock for the week commencing 2nd August 2021; this is done using StockGeist, a platform that provides market sentiment indicators of a stock in real time – by applying natural language processing to the latest news updates and social media posts. All times are given in GMT+0.
NIO Inc, founded in 2014, is a ‘pioneer in China’s premium electric vehicle market’. Based in Shanghai, they are vertically integrated across business lines to both manufacture and sell premium electric vehicles (EVs); specifically focusing on developmental autonomous driving and EV artificial intelligence technology. Now operating globally and floating on the NYSE, NIO’s ESG-focused sustainability serves as a USP that has helped expand the company worldwide.
Historical Analysis – 2020 & Jan-Aug 2021
As can be seen above, the 6-month change from the beginning of 2020 saw poor stock value growth for NIO, with little volatility; possibly due to a relative lack of intraday/intraweek trader interest, or lack of predictability discouraging trade positions, the future of NIO’s stock price was irresolute. This is unsurprising, due to contradictions in NIO’s 12/31/2019 income statement: total revenue showed strong growth of 36.73%, but was outstripped by a 42.30% increase in the total cost of revenue.
Further, an increasingly negative EBITDA and declining gross profit were offset by NIO’s early stages of development; only developing its first EV model in 2016. In a capital-intensive industry requiring high initial capital input, with profits not usually seen until years later, the lack of bearish movement in NIO’s stock price – despite the statistics – was understandable.
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