InvestorPlace – Stock Market News, Stock Market Tips and Trading Tips
Everything is going well in the world of electric cars (ETs). Or not? Tesla’s (NASDAQ:TSLA) inventories would likely hit new all-time highs after earnings, but that doesn’t mean the rest of the area is doing well. Take Nio (NYSE: NIO) for example. While NIO inventory is up more than 20% from this month’s low, inventory is still 40% below highs.
It’s a very different story than we see with Tesla: TSLA inventory has recovered for nine consecutive weeks and ignored the inventory market correction, not to mention returning to new heights.
So where did the inventors of NIO go wrong? Instead, we may wonder if this inventory of electric cars will be the next to make an exciting career and succeed at new heights. After all, Nio is no joke in this industry, just like a handful of recent corporate special target acquisitions (PSPCs) offerings.
Nio’s has less to do with the push for electric vehicles and more to do with his own execution.
In mid-August, the corporate published effects. Although the effects were forged, a blow up and down, the street was not buying it. Literally, the inventory has fallen in six consecutive sessions and seven days out of eight. , NIO inventory suffered a 21. 9% drop from peak to low.
We have already discussed the earnings report, so I will repeat it here. But seeing an inventory continue to fall (as the market hits new highs), after Nio doubled his earnings and gave false indications is. . . disturbing.
The company’s momentum suffered a drop a few weeks later. In early September, NIO not only reduced its delivery address for the third quarter (the same address it just touched on in its quarterly report), but shortly thereafter, the company announced a $2 billion fee for capital increase.
That said, for an inventory that is trading at this higher valuation level, Nio will have to be executed correctly. Look at Tesla. La company is still performing incredibly well, which, along with the technical aspects, is one of the reasons. I argued that it was going to succeed in a market cap of $1 trillion.
When we take a look at Nio’s stock, the company has a market capitalization of “only” $65 billion. That’s a sharp drop from the market cap of more than $90 billion it had earlier in the year. Although Nio has had a strong momentum, this assessment has bothered me.
Nio is expected to generate $5. 6 billion in sales this year, however, in 2022 and 2023, analysts forecast sales of $9. 37 billion and $14. 1 billion, respectively. It’s a very impressive expansion if Nio can do it.
If the company can start running at a higher point and the market has a risk-based approach, then Nio’s inventory will delight in higher prices.
That said, keep in mind that this inventory has increased more than 3,000% from the 2020 low to the 2021 high in January. The rebound from the 2019 low is even more important. as a healthy value action.
Nio’s inventory graph is quite interesting. While we had a big correction from February highs to May lows, the inventory has narrowly moved away from making new lows, which is good.
We recently had a five-wave “ABCDE” correction up to $30 before an increase. Now, back above the 10- and 50-day moving averages, let’s see that the percentage value can remain above those measures. If possible, a check of the 200-day moving average and the resistance of the problem (blue line) would possibly be appropriate.
Otherwise, we will have to be careful with Nio, which has a superior valuation compared to the criteria of car shares.
At the time of publication, Bret Kenwell had (directly or indirectly) no position on the values discussed in this article. The perspectives expressed in this article are those of the author, the subject of InvestorPlace’s publication Guidelines. com.
Bret Kenwell is the manager and manager of Future Blue Chips and is on Twitter @BretKenwell.
The post Nio may rise to new heights as Tesla made its first impression on InvestorPlace.