Tesla is by far the most traded electric vehicle stock on the market today, but its price movement and volatility make it unattractive for many investors. NIO Inc. (NYSE: NIO), a Chinese electric car company, is a strong alternative and it can be picked up for a relative bargain when compared to its larger competitor.
NIO might not be a household name in the United States, but it’s a growing electric vehicle brand in China with plenty of potential. The company develops battery technologies, electric vehicles, artificial intelligence, and autonomous driving systems. While it competes directly with Tesla and other manufacturers, it still operates on a relatively small scale. This makes it an ideal choice for investors who want a stake in a growing company.
NIO Generated $748.25 million last year, the first time it reported full year earnings for the public market. The company ran at a -12.30% gross profit margin, due to the heavy investments it makes in research and development. Despite not yet being profitable, NIO is still a strong long term bet. Electric vehicles are without doubt the future of the automotive industry.
This week, NIO announced delivery of 1,340 vehicles in June, a 23% increase over the previous month. The company sold 3,553 vehicles throughout the second quarter, beating the guidance of 2,800 vehicles. Positive signs like this have investors confident about the future of the company. Low price means this stock is relatively low risk. It could be the perfect choice for a portfolio focused on investments related to clean and renewable energy.
- 1 Year Price Growth: N/A%
- YTD Price Growth: -23.96%
- 1 Month Price Growth: 59%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.