Nio Stock: 3 Reasons to Buy, 3 Reasons to Sell
The Chinese electric vehicle maker remains a divisive stock.
Nio (NYSE: NIO), a leading producer of electric vehicles (EVs) in China, was once a hot growth stock. Its American depositary receipts (ADRs) closed at a record high of $62.84 on Feb. 9, 2021, a 10-bagger gain from its initial public offering (IPO) price of $6.26 on Sept. 12, 2018. At the time, investors were impressed by its explosive growth, expanding vehicle margins, and unique battery swapping technology.
But today, Nio's stock trades at less than $4. It ran out of juice as its deliveries slowed down, its vehicle margins declined, and it racked up more losses. Rising interest rates, tariffs, and the escalating trade war between the U.S. and China exacerbated that pressure.
So, should value-seeking investors consider buying Nio's stock today? To find out, let's review the three reasons to buy and the three reasons to sell.
