I agree that EVs are still too expensive relative to average car prices (with a small but growing second hand car market).
However Nio is not currently the mass market like Ford or VW - they target the luxury market hence their very pricy models.
They’re now being outsold by both Xpeng and Li on a monthly basis but it’s worth noting that they make much higher gross profits per car than either of the other (who are more mass market focussed).
It’s expected that Nio will eventually the affordable mass market most likely through a partnership with another firm, this should help them diversify.
For now though, there’s plenty of wealthy people (especially in China) who can afford Nio cars based off of demand (they can’t build them fast enough!)
I wonder what our options will be if Nio delists off the Nasdaq and their only listing is the HK exchange. Any ideas what would happen to the ADR stocks?
Bought on market open yesterday, and up 5% already due to the good performance yesterday.
Previously held NIO from $25 to $60, then did some portfolio rebalancing and sold at the top pretty much. Never thought I’d get an opportunity to reinvest below what I initially bought them for.
eh… the problems of investing in Chinese Stocks. I love NIO, was buying it in the 3s. Laughed when GS put out the sell and $7PT and ran it up to the 60’s on the bubble.
But all along you never really know with Chinese accounting and the lack of credible third party audits. Who remembers LK?
There is a reason why the SEC is threatening to delist pretty much all of them.
Reassuring they also don’t see anything in the revenue recognition. Seemed pretty standard stuff to me too.
BaaS is an altogether more complex issue as it’s a completely unproven business model with generally unknown/terrible unit economics. But even if (as they disclose) they purchase a battery per subscriber I would be very surprised if they could operate without a substantial reserve supply. So when expanding I don’t see anything problematic with greater sales booked than subscribers.
No problem paying £5 a month. What is confusing me is 75% of my stocks are in my ISA and the other 25% is stocks which could not go in my ISA such as NIO and some plus only stocks i wanted to hold but didn’t want to pay for plus so could not buy anymore. Freetrade has NIO listed as avaliable for a ISA, is this correct?
It wasn’t before, but it seems that it is ISA eligible now, the HL website also indicates this.
Possibly the listing earlier this year on the Hong Kong exchange meant it became eligible. (that is a guess, the ISA eligibility rules seem to be very very complicated.)
I can confirm as @JimmyJ says that it is available in the app for ISA investing. I see no reason why it should not be. @JimmyJ correctly indicates that being an ADR in itself is not a no no for ISA. What is critical is whether the underlying shares are traded on a recognised exchange. This share is traded on the HKEX which is a HMRC recognised exchange as HKEX: 9866.
In case of doubts of this nature please email support hello@freetrade.io or ping in-app support.
