Key Points
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Nio’s Stock trades at approximately $5, well below its IPO price of $6.26 since September 2018.
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The company’s valuations are under pressure from trade tensions with the U.S. and China.
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A potential increase in value could occur if Nio overcomes these challenges and expands its operations.
Nio (NYSE: NIO), a leading Chinese electric vehicle manufacturer, has seen its stock price drop significantly since reaching a peak of $62.84 in February 2021. As of now, its stock is valued at about $5, a stark contrast to its previous highs and IPO price. The slowdown in deliveries and market pressures have contributed to a loss of investor confidence, particularly amid escalating U.S.-China trade tensions.
Nio’s annual deliveries jumped to 221,970 vehicles in 2024, demonstrating a recovery compared to its previous growth rates, indicating room for expansion in both domestic and international markets. Analysts project Nio’s revenue to increase by 37% to 90.2 billion yuan ($12.6 billion) for 2025. The company’s enterprise value stands at 67.9 billion yuan ($9.5 billion), translating to just 0.8 times this year’s sales, which contrasts sharply with Tesla’s valuation at 10.9 times sales, highlighting a potential opportunity for investors ahead of Nio’s Q2 earnings report.
