Nio Stock: Buy, Sell, or Hold in 2022?

Can Nio continue to exist within the aggressive electric car market?

Rekha Khandelwal

Key Aspects

  • Nio has delivered more than 150,000 electric vehicles to this level.
  • The firm is building a second manufacturing facility in Hefei.
  • The stock is more than 50% off its excessive designate in 2021.

China is a large and fast-rising electric car (EV) market. From the beginning of 2021 through November, the number of EVs sold in China rose 178% 12 months over 12 months. China accounted for more than 40% of the worldwide EV gross sales within the first half of of the 12 months. In consequence, the full high EV makers are trying to take hang of a share of this rising pie.

Nio (NYSE:NIO) has managed to place a peril for itself within the domestic Chinese market. Let’s discuss about how the firm may maybe well well well furthermore merely fare in 2022 and past.

Nio’s impressive enhance

Nio has grown seriously within the seven years since its founding in November 2014. The firm, which launched its first production mannequin in 2018, has delivered 156,581 vehicles to this level through November. Of those, 80,940 vehicles bask in been delivered in 2021 (as of the end of November). Nio’s 12 months-to-date deliveries through Nov. 30 rose 120.4% 12 months over 12 months. Irrespective of its competition, the impressive enhance aspects toward a sturdy query for Nio’s vehicles.

A person charging a blue electric car.

Image source: Getty Photographs.

Nio currently sells three items — the ES8, which is a six- or seven-seat SUV; the ES6, a 5-seat SUV; and the EC6, a 5-seat coupe SUV. Of those, the ES6 has been Nio’s high-promoting mannequin this 12 months.

In 2022, Nio plans to introduce three original items. The firm will beginning say confirmation of the ET7, a luxurious sedan, in January and beginning deliveries at the end of March. Extra, the firm recently unveiled the ET5, a midsize sedan. Deliveries of the ET5 are anticipated to beginning in September 2022. The third planned mannequin for 2022 is not yet unveiled. Overall, Nio has an exact product lineup for 2022, which may maybe well well well furthermore merely silent support enhance its gross sales.

Past the Chinese market, Nio started deliveries of the ES8 in Norway in September. In 2022, the firm plans to enter 5 more worldwide locations in Europe. 

What may maybe well well presumably enhance Nio’s long-time period enhance

Nio has grown seriously over the years, and the firm has precise plans for the coming years. Nevertheless, the firm faces large competition from EV beginning-usaa. properly as legacy car corporations. Nio’s quality products, cutting-edge technology, and an exact community of swapping and charging stations may maybe well well presumably give it an edge over the competition.

Some graceful technology aspects of the recently unveiled ET5 encompass a digital cockpit with AR and VR technologies, a monthly subscription for self sustaining driving updates, and rather heaps of battery alternate strategies from a 75-kilowatt-hour (kWh) customary range battery to a 150-kWh battery, which may maybe provide a rated range of 620 miles. 

The firm has effect in 700 battery swapping stations to this level, more than 3,000 fast chargers, and 3,319 destination chargers across the country. Furthermore, it has connected with over 430,000 third-birthday party charging stations. By the end of 2022, Nio intends to bask in over 1,300 battery swap stations, 6,000 fast chargers, and 10,000 destination chargers. 

Users can swap a discharged battery with a charged one or hobble for an upgraded battery at Nio’s battery swap stations. It takes precise three minutes to swap a battery. Swapping the battery is an beautiful possibility in China, as evidenced by over 5.3 million swaps done at Nio swap stations to this level. 

Sooner or later, Nio is increasing its production capability to meet the rising query for its vehicles. The firm is building a second manufacturing facility at NeoPark in Hefei. The skill is anticipated to turn out to be operational within the third quarter of 2022. 

The EV stock appears to be like to be like graceful

As of this writing, Nio stock is more than 50% off its excessive designate in 2021. It silent sports a designate-to-gross sales ratio of 9, which is rarely cheap.

NIO P/S Ratio Chart

NIO P/S Ratio knowledge by YCharts.

Nevertheless, the P/S ratio has improved seriously from the stock’s ratio at the beginning of the 12 months, which became as soon as over 30. Equally, Nio’s market capitalization appears to be like to be like better than that of Lucid or Rivian, both of which bask in very shrimp gross sales historical past.

All in all, 2022 may maybe well well well furthermore be a like minded time to add Nio stock to your EV portfolio.

This article represents the opinion of the author, who may maybe well well well furthermore merely disagree with the “decent” recommendation situation of a Motley Fool top price advisory provider. We’re motley! Questioning an investing thesis — even truly one of our non-public — helps us all deem seriously about investing and put choices that support us turn out to be smarter, happier, and richer.

Rekha Khandelwal has no position in any of the stocks mentioned. The Motley Fool owns and recommends NIO Inc. The Motley Fool has a disclosure policy.”>

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