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Buying Nio shares: complete guide to investing

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Buying Nio shares is investing in a Chinese automaker based in Shanghai, specializing in the design and development of autonomous electric vehicles.

The company also participates in the FIA ​​Formula E Championship, the first fully electric single-seater racing series.

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🥇 Company NIO Inc
🎯 Isin US62914V1061
⭕ Ticker NIO
📈 Bag NYSE
🏆 Rating ⭐️⭐️⭐️⭐️⭐️

As with any type of investment, before buying or investing in stocks it is important that we review three key questions:

  • How much money can we invest in that asset
  • With which investment tool we will invest
  • How to select a good platform to invest through

The amount of money to invest, it is recommended, should not be higher than what we are willing to lose without affecting our economy in a very negative way.

Throughout this guide, in response to the last two keys, in addition to analyzing Nio stocks, we will also focus on CFDs and the best Stock Brokers such as eToro and Plus500 .

Nio Shares Quote in real time

How to buy Nio shares

If you have decided to buy Nio shares, the first thing you should know is that there is no single way to invest.

Traditional investment formulas, such as the purchase of shares in cash, generally have high commissions, in addition to the need for intermediation. On the other hand, they will always depend on the positive evolution of the asset in order to gain profitability.

There are other alternatives to consider, such as CFDs or contracts for difference.

It is a derivative financial product. It has a very relevant characteristic and that is that it does not require the purchase of the share. When opening a CFD the investor speculates about what will happen to the action in the market. So I can make any of these decisions:

  • Open a bullish CFD if you expect the asset to go up in value
  • Open a bearish CFD if you expect the asset to decline in value

This provides a double direction that cannot be provided by direct investment with the purchase of cash shares or other investment tools such as funds.

Other important features of CFDs are:

  1. They have no commissions
  2. They can be operated in different terms (from a few seconds to a day, or medium and even long term)
  3. They allow diversification by investing in a large number of different assets

Where to buy Nio shares

CFD trading requires trading platforms. These online brokers are the figures through which the investor carries out his operations, that is, where he opens his contracts for difference.

In the market there are many trading platforms, but not all are the same. There are some keys to keep in mind before selecting an online broker:

  1. It must be regulated and therefore comply with current legislation
  2. It must offer a comfortable, secure and affordable platform
  3. It will offer a good deposit policy, generally with low deposits to operate regardless of the user’s profile.
  4. It will provide different support tools to the trader, ranging from automated investment systems to information tools, demo accounts, etc.

Two platforms that meet all these requirements are eToro and Plus500

eToro

eToro is considered as one of the best trading platforms on the market. It is a broker with a long history and highly recognized that has millions of users globally.

The platform is regulated, therefore, it is a safe and reliable environment that complies with current regulations, for greater investor safety.

 

Some of the relevant features of this broker are:

  1. Apply very low spreads compared to the market average
  2. Have a large number of assets to invest
  3. Offer your own automated investment system (Copy Trading)
  4. Be able to start trading with a low deposit (200 euros)

The investment formula chosen by this platform is its own web environment. It is a very comfortable web environment, easy to access and simple, capable of satisfying both an experienced investor and a novice investor.

Copy Trading is a system really appreciated by users. Allows you to invest in automatic mode. The model is based on copying and automating the investments of professional traders. This makes it easier to have professional strategies without spending the time to develop them or without acquiring the knowledge to do it. Everything in automatic mode.

The platform offers a free demo account without limitation of functionalities to discover how to trade, learn, improve and test before investing with real money.

 

Plus500

Plus500 is considered another of the best Trading platforms on the market. It stands out, as we will see, for being one of the platforms with the highest volume of assets as well as for large sponsorships such as that of the Atlético de Madrid football club of the first football division in Spain.

From a security point of view, it is a regulated broker that complies with regulations and, therefore, offers a safe and reliable environment for the investor.

This broker provided the particularity of allowing to operate from its own web platform, very comfortable and affordable, to a tool like Metatrader 4, one of the favorite tools of veteran investors to operate thanks to its flexibility and adaptability.

 

Among the relevant characteristics of this platform we highlight:

  1. The great variety of assets on which to invest, being probably one of the platforms with the largest volume of them
  2. A large number of information tools that make it easy to understand the evolution of assets
  3. An affordable deposit policy for any investor profile

As befits a good trading platform, this broker offers a free demo account that makes it easy to test all the platform’s functions and operate with virtual money.

 

NIO history and general data

NIO was founded in November 2014 by William Li, President of Bitauto and NextEV . Following its launch, several companies invested in NIO, including Tencent, Temasek, Baidu, Sequoia, Lenovo, and TPG. Its first model, the sports car NIO EP9, debuted on the same day the brand was created.

In October 2016, NIO announced that the California Department of Motor Vehicles had granted it an “Autonomous Vehicle Test Permit” and that it would begin testing on public roads under the guidelines of the “Autonomous Vehicle Tester Program” as part of its autonomous vehicle program. According to the company, it planned to launch vehicles with level three and level four autonomy.

In May 2018, NIO opened its first battery swap station in the Nanshan district of Shenzhen (Guangdong, China), nicknamed “Power Swap Station.” Only batteries for ES8 cars would be available at this station.

In October 2016, NIO announced that the California Department of Motor Vehicles had granted it an “Autonomous Vehicle Test Permit” and that it would begin testing cars on public roads in accordance with the guidelines of the “Vehicle Tester Program. Self-Employed »as part of its autonomous vehicle program. The company raised more than $ 1 billion from investors. According to the company, it plans to launch vehicles with levels 3 and 4 of autonomy.

In May 2018, NIO opened its first battery exchange station in the Nanshan district of Shenzhen, Guangdong province, China, nicknamed “Power Station Swap . ” Only batteries for ES8 vehicles can be purchased at this station.

Buying Nio shares: company evolution

In 2020, NIO has shown steady growth even despite the quarantine and coronavirus.

The increase in deliveries in April 2020 amounted to 105.8% compared to March and 180.7% compared to April 2019.

A total of 2,907 ES6 with five seats and 248 ES8 with seven and six seats were delivered. Sales growth for the premium ES8s is a positive sign, with 180 more units sold in April than a year earlier.

Total EV shipments throughout NIO’s history reached 38,906, with 6,993 delivered in 2020.

According to him, the company plans to start in Europe, although he does not name any particular country.

NIO’s plans include entering major world markets by 2023 and 2024 – the company is on its way. However, NIO still has a long way to go to implement its global ambitions if it is to match Elon Musk’s Tesla scale.

In the midst of the coronavirus outbreak, NIO announced financing negotiations with the government of the city of Hefei, in southeastern China. As a result, the company received 7 billion yuan ($ 1 billion) from investors, including those supported by the state.

Meanwhile, according to NIO, vehicle shipments reached a record 3,740 units in June and 10,000 in the second quarter overall. The company’s shares are up more than 240% this year.

Nio financial data

Data Amounts (USD) Variation%
Income 16.26 mil 107.77%
Net income 5,610.79 M 50.84%
Box 38.43 mil 4,353.38%
Profit margin -34.51% 76.34%

Nio Competition

Nio’s competitors are companies focused on the manufacture and sale of high-performance electric vehicles. Being its main competitors in this sense:

  • Tesla
  • Youxia Motors
  • Faraday Futyure

Nio Dividend Shares

Do Nio shares issue dividends? Unfortunately no, the company is young and involved in a very competitive market sector.

For this reason, Management has chosen not to allocate part of the turnover to the dividend, in order to be able to reinvest it in research projects and improve the cars on the market.

NIO Forecasts

What are the predictions about NIO? To date, many analysts confirm the buy signal for this stock.

After a 2020 starring role, with the stock market value jumping from $ 3 to $ 60 in just 12 months, now NIO’s career has slowed down. However, the potential for further increases is clear, especially as the electric car sector is growing rapidly.

The Target Price for Nio’s shares is $ 60 and will eventually reach $ 100 per share.

 

Why buy NIO shares?

To date, there are at least 3 very good reasons why it is wise to buy Nio shares:

  • Growing business: 10 years from now, electric cars will be the largest share of the market. Nio enjoys an advantageous position in this business segment.
  • Remarkable cash flow: the company is very liquid and has no debt problems. In essence, the solid foundation with which to continue growing.
  • Few Competitors: To date, other Tesla, there are few competitors capable of really worrying Nio. Not bad for a company that operates in a business sector with enormous potential

conclusion

Buying Nio shares would involve the investor in a booming business, but with great competition: that of electric vehicles. In this case, with a Chinese company that has oriented its business towards high-performance electric cars.

The company, although it did generate doubts, has had a good landing on the stock market, and has contributed, even in a difficult year like 2020, relatively good results when compared to its competition.

It is an asset for the future to take into account , interesting both for the sector in which it operates and for the segment it has chosen to compete in it.

In this guide, in addition to analyzing the asset, we have devoted a part of our analysis to the possibilities of investing with contracts for difference in this or other stocks. For this we have valued that it is a product without commissions, flexible and that allows you to invest by speculating for or against the action.

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