Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Jefferies remains sidelined on Nio

Stock Markets Nov 28, 2022 20:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
NIO
-2.61%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Shares of Nio Inc. (NIO) are up 0.84% in mid-day trading on Monday after Jefferies reiterated a Hold rating on the stock. The electric vehicle maker prides itself as a premium brand, targeting a smaller subset of customers in the RMB300-600k price bracket. Its premium market positioning has prevented the company from scaling volumes and lowering unit costs as quickly as its more mass-market rivals.

NIO’s ET5 has been one of the hottest cars in the market. However, deliveries only reached 1,609 vs the expected 10k in October due to supply chain bottlenecks. At NIO's 3Q conf call, the company said it had lost RMB4.1b, or the equivalent of RMB131k per car, but chairman Li Bin believes that NIO can break even by 4Q23 with gross margins rebounding to 20-25%. Jefferies believes that this is unlikely as Lithium prices will likely stay higher than Nio’s forecast. According to the company, every RMB100kt change in the lithium price results in a 2ppt change in GPM. Also, R&D prices are likely to stay high as Nio continues to invest in vertical integration.

By Michael Elkins | Michael.Elkins@streetinsider.com

Jefferies remains sidelined on Nio
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email