NIO is one of China’s leading pure-play EV makers. It has a proven technology platform and manufacturing ramp capability.
How do I purchase NIO stock?
To buy NIO stock investors should open a brokerage account. You can use a brokerage account to purchase stocks, bonds, mutual funds, exchange-traded funds, index funds, options, futures, foreign currencies, commodities, real estate investment trusts, etc. There are several different types of brokers to choose from, and there are many online trading platforms, although each offers various features.
If you an investor who wants a close personal connection with a financial advisor at your brokerage company, you might be better opting for a full-service broker. Full-service brokers, as the name implies, give the full range of traditional brokerage services, including financial advice for retirement, healthcare, and everything related to money. However, the downside of this type of broker is the cost. They can charge substantial fees, including a percentage of your transactions, a percentage of your assets that they manage, and sometimes, a yearly membership fee.
Similar to a full-service broker, a Robo-advisor will choose investments and perform trades on behalf of their customers. A Robo-advisor will help you build an automated portfolio of investments that matches your time horizon and risk tolerance. They’re typically cheaper than a human advisor. The disadvantage is, it relies only on a computer program and there is no human advisor to fit each individual customer.
Online brokers are the easiest to access because you can do so from the comfort of your own home. However, online brokerages have chosen not to focus on providing personalized, white-glove service. They do not typically provide investment advice as a service, though they may provide research and educational tools. That’s allowed them to offer rock-bottom costs to customers. Many online brokers are also discount brokers because they offer zero commission trading. Some examples of online brokers are Fidelity, Robinhood, TD Ameritrade, Charles Schwab, Interactive Brokers, eToro, Webull, and E*Trade. One of the most popular discount brokers is Fidelity. According to brokerage-review.com, Fidelity investment was leading with the largest brokerage accounts in the United States in 2021 at 32.2 million.
If you go with a robo-advisor or an online brokerage, you can have your account open in literally minutes and start investing. If you opt for a human advisor, you’ll need to interview some candidates to find which one will work best for your needs and keep you on track.
Before you buy NIO stock, or any other stock, you should research them to make sure they are a good buy. The best place to start is with the company’s Form 10-K and Form 10-Q. The 10-K is the company’s annual report containing independently audited financial statements. It enables you to review the firm’s balance sheet, its income sources, how it manages cash, and its revenue and expenses. The 10-Q is the company’s quarterly update on its financial results and operations.
If you want to buy an individual stock, such as NIO, you must understand that they can carry much more risk than other securities such as mutual funds or exchange-traded funds. If you’re not sure, working with a financial advisor may be right for you. Financial advisors can protect you from making decisions that may not work to your benefit.
Is NIO stock a buy right now?
Nio stock is trading at the current price of $19.91 (March 25, 2022). NIO shares were down about 40% year to date and down about 63% from their July 52-week high of more than $55 a share—far worse than the 5.3% and 4.7% comparable year-to-date drops of the S&P 500 and Dow Jones Industrial Average. Among 16 analysts offering recommendations for NIO, the median price target on the beaten-down stock is $45.51, which is 128.58% higher than the current share price. There are currently 2 hold rating and 14 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should “buy” NIO stock.
Wall Street clearly thinks that NIO stock is oversold and undervalued at its current price, especially given the company’s big delivery numbers and current European expansion plans. Although it’s just shy of the 100K milestone, it still represented a 109% YoY increase. It will be launching new products and exploring other markets soon. NIO also has plans to attain a 600K capacity over the next few years, on par with Rivian’s.
Nio stock could continue to fall in the near term along with other Chinese and electric vehicle stocks. NIO stock has undergone an utterly undeserved pricing drop. The market has turned its focus to high-quality companies with proven business models and robust profitability. However, long term, NIO is set up for a big rally from its current depths, according to the forecasts of professional analysts. Therefore, we think NIO stock is a buy right now, but for speculative investors only.