Stocks

NIO Stock: Why you should double down on your Nio position

nio stock

Shares of Nio (NIO) saw a 17% drop from last week into this week. I call this an opportunity to “buy the dip” as one of China’s greatest Tesla (TSLA) competitors get the ball rolling. This is a chance to take to buy NIO stock at a steep discount.

This year Nio has seen tremendous gains, with it nearing $63 in stock price per share. Many investors predict that NIO stock will reach around $100 this year. I absolutely agree with them.

Nio has a strong position

The fundamentals on Nio’s business is very strong. In January, Nio reported positive vehicle numbers, they delivered much more than 7,100 vehicles. They exceeded analysts expectations on how many vehicles they were to deliver. Deliveries are up 360% this year and is expected to continue growing as Nio becomes a leader in China’s EV market.

EVs will be at the epicenter of this rebound in China’s auto market. Thanks to government support, increasing supply, falling costs, and shifting consumer demand, China’s EV market is expected to grow by an impressive 40% in 2021.

Bottom line is that Nio could have a better year this year in performance than last year.

Nio to expand to Europe and United States

Nio is quickly expanding it’s coverage on the EV market. The company has started opening positions in Europe, last year, the company gave out hints that it plans to expand to Europe in the second half of 2021 and has already opened a showroom in Denmark.

Other signals by online job portals suggest that Nio is looking to expand to the United States, this signal comes out as the company is looking to hire a mid-senior level executive to lead business development regarding the US market.

In the meantime, NIO’s growth story is nowhere close to slowing down. As an illustration, the company is currently on a steep production ramp-up, whereby its capacity is expected to reach 300,000 units per annum by the end of 2021 or early 2022.