#4 - NIO (NYSE:NIO)
Nio (NIO) - Next I’m moving over to electric cars, and I’m not going to write about Tesla (NYSE:TSLA)? That’s a separate article, but in the electric vehicle space, Nio (NYSE:NIO) looks to be coming down from a dead cat bounce. And that may have the company going out of business. Nio staged a rally that more than doubled its stock price. The company sold more electric vehicles than expected in the fourth quarter. Plus, the Chinese government announced they would not be making significant cuts to the subsidies it provides. That’s all well and good. The problem for Nio is that the company is running out of cash. Company executives acknowledged both a $275 million cash balance and the fact that balance is not sufficient to provide working capital for 2020. Plus, the company was expecting a $1 billion cash infusion from the Chinese government in Guangzhou. But that investment looks like it will be sizably less (more like $150 million) if it happens at all. It’s tough to bet on a stock that has a likelihood of not being in business in a year’s time.
About NIO
NIO Inc designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services.
More- Current Price
- $4.24
- Consensus Rating
- Hold
- Ratings Breakdown
- 2 Buy Ratings, 10 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $5.38 (27.0% Upside)
