Buy NIO, Sell Benz, BMW, And Volkswagen

December 22, 2022

Buy NIO, Sell Benz, BMW, And Volkswagen

Dec. 22, 2022 5:26 AM ETNIO Inc. (NIO)BMWYYMBGAFVWAGY18 Comments

Summary

  • Having beaten German carmakers in the world’s largest EV market, NIO will soon press its advantage in international markets.
  • German carmakers risk being left behind in an EV future.
  • NIO’s fast-growing opex will not pose a risk, as the company has plenty of runway.
  • Competition, overinvestment in product development, and the return of zero-COVID lockdowns are the main risks to NIO.

 

Investment Thesis

NIO’s (NYSE:NIO) decisive victory over German automakers Mercedes-Benz (OTCPK:MBGAF), BMW (OTCPK:BMWYY), and Volkswagen (OTCPK:VWAGY), in the luxury EV segment in China emboldened the Chinese car maker to expand to

NIO Opex

Seekingalpha

 

NIO Cash and cash equivalents

Seekingalpha

 

Passenger Car Deliveries BMW, Mercedes-Benz, and Volkswagen

Author, Company annual reports

 

Deliveries and market share

Author, CPCA data

 

Nokia VS Apple smartphone sales and share price.

Reuters

 

This article was written by

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The China Investor

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Singaporean investor focused on China equities and macro. Nio investor.

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