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Still Strong Electric Vehicle Deliveries Highlight Electric Vehicle Boom For Nio (NYSE: NIO) Prospects Look Brighter Than Ever Nio stock has both advantages and a bright future ahead

Nio has posted strong delivery figures and is set to increase market share in China In addition, companies like General Motors (NYSE: GM) are increasing their investments in electric vehicles

Investors have even more reason to expect Nio’s growth to continue in 2021 Nio could also widen its lead against GM by considering plans for global expansion earlier

Speculators have offered shares of mining companies in anticipation of falling battery supplies pushing commodity prices up This is a potential indicator of the continued increase in EV sales

“The fundamental limit of electric vehicles today, in general, is the total availability of cells, what is the production of factory cells in gigawatt hours,” said Elon Musk, CEO of Tesla (NASDAQ: TSLA). you can’t grow faster than that “

Car sales in China increased 257% last month Electric vehicle sales nearly tripled by 2,814% year-on-year to 158,000 units As the dominant brand in the region, Nio will likely announce continued growth in unit sales in the quarter and year ahead

In US, record sales projections this year are good news for Nio action Edmunds executive director of insights expects more electric vehicle models in the country Adds to massive growth the availability of EV units on the market

Nio’s strength rules out its almost certain improved outlook once it moves into US markets Nonetheless, given that these projects are still far away, investors can only imagine the full potential for global revenue over the next few years. years

To finance its expansion, Nio has sold shares several times to raise cash It is to raise its money in hand In the short term, the company could reduce its development costs while benefiting from higher sales thanks to word of mouth. ear in China

Once it becomes profitable, Nio could invest its positive free cash by entering the US market

With a new Democratic administration, trade tensions between the US and China may facilitate Relaxed policies, such as freer trade and lower tariffs, may encourage Nio and Chinese EV manufacturers to enter readS market

Li Auto (NASDAQ: LI) and XPeng (NYSE: XPEV) are also bursting with money If any of the companies consider the US market, Nio will have to follow suit Nio faces geographic risks by limiting itself to Chinese market For example, the government can enact stricter regulations It can also revise its incentives Last year, China cut its subsidies for new electric vehicles by 10%

On Wall Street, Nio’s most recent rating comes from Deutsche Bank Price target of $ 70 is above average of $ 65 (by Tipranks) Savvy readers might find a fair value pattern for Nio shares In a five-year discounted cash flow model, Nio needs to see at least 55% revenue growth through 2024 In this scenario, Nio shares are worth almost $ 60.00

In the chart, Nio gets a better quality score than XPEV or LI For now, the market sets a higher market cap for Nio than the other two

Investors have yet to watch Xpeng and Li Auto offering more beautiful designs or better technology Nio will have to protect its moat in the future

For now, its battery swap program offers its customers the convenience They don’t have to wait at charging stations

Nio traded as little as $ 2.11 as the pandemic unfolded in China At the time, the bears speculated he would file for bankruptcy Now that China is the only country in control totally pandemic prevention, customers are willing to spend

Electric vehicles are a staple that will only gain popularity The rest of the world will follow by embracing the EV revolution

Disclosure: As of the date of publication, Chris Lau does not have (directly or indirectly) any position on any of the titles mentioned in this article

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Nio stock

Global news – US – Here’s why the outlook for Nio Stock continues to improve