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Consistently strong electric vehicle shipments underscore electric vehicle boom. Outlook looks brighter than ever for Nio (NYSE: NIO) Nio stock has both an uptrend and a bright future ahead of it

Nio has had strong shipments and is poised to expand its market share in China. Companies like General Motors (NYSE: GM) are also increasing their investments in electric vehicles

Investors have even more reasons to expect Nio’s growth to continue in 2021. Nio could also extend its lead over GM by considering previous global expansion plans earlier

Speculators are offering stocks of mining companies in anticipation of falling battery supplies and rising commodity prices, which is a possible indicator of the continued surge in EV sales

“The fundamental limit for electric vehicles right now is generally full cell availability, which is the capacity of factory cells in gigawatt hours,” said Elon Musk, CEO of Tesla (NASDAQ: TSLA). “And you can’t grow any faster”

Last month, China’s auto sales rose 257%. Electric vehicle sales have almost tripled 2814% year over year to 158000 units As the dominant brand in the region, Nio is expected to see sustained sales for the quarter and the coming year

In the US, projections of record sales this year are good news for Nio stock Edmunds’ executive director of Insights expects more EV models in the country, adding to the massive growth in the availability of EV units in the market

Nio’s strength precludes his almost certain improved prospects once he moves to US Markets With these plans still a long way off, however, investors can only imagine the full global sales potential in the next few years

To fund expansion, Nio sold shares several times to raise cash This increases cash on hand In the short term, the company could lower development costs while generating higher word of mouth sales in China

Once it is profitable, Nio could invest its positive free money by joining the US Market

With a new democratic government, trade tensions arise between the US. and China May Ease Relaxed policies like free trade and lower tariffs can encourage Nio and Chinese EV manufacturers to enter the US Market

Li Auto (NASDAQ: LI) and XPeng (NYSE: XPEV) are also cashless if one of the companies takes the US into account Market will have to catch up with Nio Nio faces geographic risks by restricting itself to the Chinese market For example, the government may impose stricter regulations It may also revise its incentives Last year, China cut its subsidies for new electric vehicles by 10%

On Wall Street, Nio’s latest rating comes from Deutsche Bank The price target of USD 70 is above the average of USD 65 (per Tipranks) Smart readers could name a fair value model for Nio stocks In a five-year discounted cash flow model, Nio must see sales growth of at least 55% by 2024 In this scenario, Nio stocks are worth nearly $ 6000

In the table, Nio does better than XPEV or LI in terms of quality. Currently, the market for Nio sets a higher market capitalization than the other two

Investors still have to watch out for Xpeng and Li Auto, who have nicer designs or better technology, and Nio needs to protect its moat in the future

The battery change program offers its customers convenience for the time being. You don’t have to wait at charging stations

Nio was trading as low as USD 211 just as the pandemic unfolded in China Bears speculated at the time that it was going to file for bankruptcy Now that China is the only country fully in control of the pandemic, customers are ready to make money output

Electric vehicles are a hot “must-have” that will only grow in popularity. The rest of the world will embrace the EV revolution

Disclosure: At the time of publication, Chris Lau held (neither directly nor indirectly) positions in the securities referenced in this article

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Nio Stock

World News – US – Here’s why the outlook for Nio stock is getting better

Source: https://investorplace.com/2021/02/nio-stock-prospects-keep-looking-better/