Chinese electric vehicle-maker NIO (NYSE:NIO) has grown significantly within the three years of its initial public offering. Meanwhile, NIO stock has gone from $21 in October 2020 to $62 in February 2021 before slipping to $50 in July 2021. It is currently trading close to $35.
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The company has consistently reported strong revenue numbers and continues to grow sales. The monthly delivery numbers are impressive despite the chip shortage.
I have always been bullish on NIO and strongly believe that every dip is a chance to buy. The shares will rebound very soon and investors should not delay.
Let’s take a closer look at the catalysts working for NIO stock.
Strong Delivery Numbers
Nio has always impressed investors with its strong delivery numbers. It delivered 10,628 vehicles globally in September. It is an all-time high monthly record and shows 125% year-over-year growth. Despite facing a chip shortage, the company managed to report stellar numbers. It delivered 24,439 vehicles in the third quarter showing a 100% rise year over year and exceeding the quarterly guidance by the company.
After cutting guidance for the quarter, the company aimed to deliver 22,500-23,500 EVs, but it certainly crushed the target in style and has delivered more than the number expected. It will have a strong impact on the bottom line.
The strong delivery numbers are proof that the company will report impressive revenue for this quarter as well. The cumulative deliveries of the company stood at 142,036 vehicles. Q3 results could take NIO stock higher.
Smashing International Market Entry
Nio recently commenced deliveries of its flagship SUV, ES8 in Norway. The ET7 luxury sedan will also begin production early next year and will be available in Norway and Germany.
Additionally, it announced that it will open an NIO House in Oslo, its first showroom to open outside China. Nio will also build 20 power swap stations by the end of next year and will offer battery-as-a-service. The Norwegian capital will also see the opening of a service and delivery center this month.
Nio already has a strong presence in China and the global expansion is a smart move. By entering Norway, Nio will be able to expand across different European countries with time as the growth potential is massive.
Rival XPeng (NYSE:XPEV) already has a strong presence in Norway. Interestingly, that country leads the world in EV ownership. In fact, the 1994 Lillehammer Winter Olympics deployed a dozen EVs as part of its transportation fleet. EV makers are entering the country with high hopes of generating strong sales and revenue. Nio is ready to take on the international market with this move.
New Battery Pack
Investors are happy about the announcement of the new EV battery. The company is working to develop a power source which has the right cost and range. This new battery was rolled out last week, it uses lithium-iron-phosphate, and ternary lithium in place of nickel and cobalt. While less expensive than the traditional type, a trade-off is less range per charge.
This move will allow NIO to push its vehicles across all market segments. With a lower price, the battery will help NIO attract more consumers.
Bottom Line on NIO Stock
In just three years, Nio has reported impressive year-on-year growth in delivery numbers and managed to narrow the losses. With a massive domestic market and an entry into the International market, the EV maker is well-placed in the industry.
The new battery will help Nio achieve higher sales by pushing down the prices. As the EV industry continues to expand, Nio is strengthening its hold on the market. How the company performs in Norway will speak a lot about its ability to establish itself as a global brand.
The dip is the perfect chance to add NIO stock to your portfolio.
I believe anything below $40 is a good bargain.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.
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