$NIO Q3 2022 Earnings Report
$NIO Short
NIO is a car company located in China. Generally speaking, their stock has gone down after every report mostly due to them disappointing investors on how many cars they are going to be making. During the last quarter, their stock dropped by around 7% from $20 to % 17 as they were not able to build the expected number of cars. However, it had since then rebounded back to $2 in recent months after the run-up through June on accelerating production and delivery ramp-up improvements as China's monthslong COVID disruptions to supply chains started to ease. But that was until yesterday. Recently China announced another lockdown which makes it almost guaranteed that NIO will have to revise the number of cars they will be making to a lower number. Their stock is currently also back at 17%. Looking ahead, NIO is expected to post an even stronger second half of the year, with the introduction of a strong product pipeline that adds its newest SUV to its sales mix later this month, alongside other updated 2022 SUVs. Favorable policy support in China will also continue to be an advantage to NIO's operational performance in the second half of the year. However, I believe these will also not be possible as the factory will be closed. Also Due to high regulatory risks, many Chinese companies are being removed from Nasdaq and many people are holding off from buying them. Investors will remain focused on the most this quarter and will be updated regarding NIO's working relationship with suppliers at the EV maker's upcoming earnings call to decide whether production can accelerate through the third quarter and the remainder of the year as management had promised. But this was all before the lockdown so I don’t know if investors are still going to care as much. However, it will definitely have a negative effect on them.
Sentiment: It is amazing what NIO is doing. All these NIO houses, swap stations, service centers, and delivery centers are so unique. NIO delivered 10k vehicles increasing 81% year over year. Total vehicles delivered reached 238k. Market Cap28,658,004,508 Forward P/E 1 Yr.-28.14 Estimate: -8%