Should You Buy Nio While It's Below Its IPO Price?
The Chinese EV maker is gradually turning things around.
Nio (NYSE: NIO), a leading maker of electric vehicles in China, went public at $6.26 per ADR on Sept. 12, 2018. On Feb. 9, 2021, its stock closed at a record high of $62.84. Its shares surged more than 10-fold as it dazzled investors with its explosive growth rates.
But today, Nio's stock trades at about $4. It tumbled as investors fretted over its slowing deliveries, declining vehicle margins, persistent losses, and the rising tariffs on Chinese EVs. So should investors accumulate the stock while it's languishing far below its IPO price?
Image source: Nio.
