From Nasdaq.: 2024-06-09 05:35:00

Nio’s first-quarter earnings report showed a 7% revenue drop to 9.91 billion yuan, with a net loss widening to 4.9 billion yuan. The stock price fell nearly 7%, now trading over 20% below its IPO price. Can contrarian investors find value in this struggling EV maker?

Nio’s deliveries and margins declined in the first quarter, reflecting a slowdown in growth. Analysts expect a rebound in the second quarter with deliveries expected to rise 130-138% year over year. The company aims for high-quality growth driven by new products and brand positioning, with revenue forecasted to rise 20% for the year.

While Nio’s outlook is positive, challenges remain with declining margins and strong competition. The company must stabilize deliveries and margins to see sustained growth. With uncertainties in the EV market and geopolitical tensions, Nio’s stock remains a speculative play that may take time to show significant returns. Consider all factors before investing.



Read more at Nasdaq.: Is Nio Stock a Buy?