Should You Buy Nio Stock

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Should You Buy Nio Stock

Should You Buy Nio Stock While It'S Still Cheap?

Many people are making comparisons between the NIO and the Tesla stock. After all, both are in the same space, and NIO has managed to become a prominent player in a short span of time.

So, is it a good idea to buy the NIO stock while it is still cheap? After all, you could get a massive return on investment if NIO stock turns out to be the next Tesla.

Tesla Vs. Nio Stock Comparison

If we look at Tesla, it has been up by more than 2470% since its inception. There are only a few other stocks that can match this level of returns. So, it's only natural to think that if Tesla can do it, then why can't NIO do the same?

If we look at NIO, it was listed in 2018, and since then, its performance isn't something to write about! The NIO stock made a high of $62 in 2021, and since then, it has fallen to under $10.

So, we can say that NIO stock has lost more than 80% of its value in just a span of a few years. Meanwhile, Tesla has reached new highs during the same period.

In China, the sales of NIO cars continue to increase, and the revenue has also increased by 9%. Also, NIO has been launching new models at a much faster rate than Tesla.

Everything is good, but there is just one problem with NIO. The NIO company is not profitable, and it never was in all those years of its existence.

But many would say that even Tesla was unprofitable for many years. But the bottom line is that Tesla has been profitable for years now, while NIO is not yet.

So, the risk of buying NIO shares is much higher than buying Tesla shares a few years ago. Also, the stock has literally tanked to the ground, which makes it a not-so-great option.

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