Should You Buy Nio Stock

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Should You Buy Nio Stock

Should You Buy Nio Stock While It'S Cheap?

Nio is a budget EV maker and is giving fierce competition to already established EV players like Tesla. The data also shows that the revenue of Nio is soaring, but we have yet to see its effect on the stock price.

For now, Nio stock is still trading under the $10 resistance level, but this stock has a very interesting history. Back in 2021, the Nio stock was trading at $62.84, which clearly shows how much it has declined in a few years.

Nio Revenue Has Increased By 300%

But despite the poor performance in the stock market, Nio is still a big player in China, the EU, and other markets. The company is also busy with the manufacture and launch of new designs.

At the same time, Nio continues to expand its footprint and is already present in multiple markets. All of this tells us that Nio stock might make a comeback sooner than expected.

The main revenue source of Nio is the Chinese market, where it sells most of its cars. In the Chinese market, the sales of Nio EVs have increased in the last few years.

But Nio is also expanding into the EU and plans to establish its footprint in North America. A quick look at sales in the Eurozone shows they sold 2365 vehicles in 2023. But in 2024, they only sold 1630, which is quite a decline and shows shrinking sales.

Another thing to keep in mind is that Nio is still not profitable despite the fact that its revenue increased by 300% over the last 5 years. But this makes sense given that they are selling the cars at very low rates, which is eating away at their profit margins.

But, experts believe that Nio is trying really hard to turn profitable. So, there's a good chance that Nio might turn profitable sometime in 2026. With this considered, it can be worth looking at the Nio stock if you can tolerate risk & can wait for the long term.

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