From Nasdaq: 2024-05-05 10:05:50

Chinese luxury EV maker Nio delivered 15,620 vehicles in April, a 134% increase from last year, led by 2024 vehicle series. Meanwhile, Li Auto saw a 0.41% growth with 25,787 deliveries, and Xpeng delivered 9,393 vehicles, up 32% year-over-year.

Despite strong sales, NIO stock has plummeted 90% from $50 in Jan. 2021 to $5 now, underperforming S&P 500 for 3 years. On the other hand, the Trefis High Quality Portfolio has consistently outperformed the S&P, raising questions about Nio’s future performance against the market.

Global EV demand concerns persist, but China’s incentives for trading gasoline cars for electric vehicles could benefit the industry. However, competition and price wars are intensifying, with Tesla scaling back production amid rising competition. Nio, focusing on premium products with some promotions, may be less impacted.

Nio stock trades at $5.30, approximately 1x consensus 2024 revenues. Comparison with rivals Li and Xpeng shows Nio’s position. In terms of returns, Nio saw a 12% return in May 2024, -42% YTD, and -17% since 2017, while the S&P 500 returned 0%, 5%, and 124% respectively. Trefis Reinforced Value Portfolio outperformed both.



Read more at Nasdaq: Nio’s April Deliveries Were Solid. Is The Stock Undervalued At $5?