NIO Stock : Shares of Chinese electric vehicle maker NIO (NYSE: NIO) were trading lower on Tuesday. There was no obvious news pushing the shares lower, but he may have been involved in a sell-off that affected other recently hot investments including Tesla and Bitcoin.
While there are good reasons to be optimistic about the NIO’s long-term outlook, it is hard to argue with the notion that the stock has gotten expensive. After all, this company only sold 43,000 cars in 2020 – and it’s still worth twice the market value of Ford Motor Company.
Investors who have been around The Motley Fool for a while know that some of the shares look expensive now often look cheap in the past.
This could be true for NIO Stock. But I think it’s very likely that today’s bearish move is related to declines in Tesla, Bitcoin and similar assets, in the sense that a lot of things look expensive – and some investors may respond by moving to reduce the overall portfolio risk. It also includes taking some NIO Stock profits, which could be the reason for the stock’s drop today.
There was some small news on NIO Stock on Tuesday, but it wasn’t bearish. China’s Auto Home website reported that NIO Stock is now in the final stages of testing its new second-generation battery replacement stations. The company plans to start distributing the stations in April.
The approximately 200 battery change stations from NIO have become an important part of the overall business strategy. Buyers of new NIOs can buy the vehicle without the battery pack, which lowers the purchase price, and opt for a subscription to the battery swap service, which brings NIO ongoing revenue after the vehicle is sold.
The new, second generation stations can handle more vehicles per day than the current stations of NIO and complete the exchange process in less time than the approximately three minutes required at the current stations. The company hopes to have 500 of the new stations up and running in China by the end of this year.
Auto investors can look forward to learning more about the new stops as NIO Stock reports its fourth-quarter and full-year 2020 earnings after the U.S. markets close next Monday, March 1st.