Disclaimer: Whatever I say or post doesn't act as financial advice, so please do your due diligence before making any decision.
I added NIO x 10 shares @ $4.40 each yesterday. I watched the documentary named Next Gen China on youtube. It featured NIO as its focus as they are piloting a battery swap technology which enable users to have a new battery in their cars at all times just with a press of a button in the car, even when you are sleeping, dining in a restaurant or chilling. The car has an automated technology to drive to the nearest battery swap station, and the whole process is automated and driverless. This eliminates the trouble of having to find a EV charging station on the road, and waiting for your car to be charged. The time saved is being rewarded back to the consumers. They are looking to scale it nationwide by the end of year in China. If successful, they will start to explore bringing the technology internationally. And I would assume that they will apply for patent for their technology.
Of course it comes with the necessary technology like AI bot, self parking technology, sleek design and an EV port which still allows you to charge through a EV charging station if you wish to. The owner has built multiple NIO showroom in China as well, but its not just a showroom. He built it as a co-working space, so individuals could do their work in the space, and understand more about NIO as a company and its ideology and vision. I personally think its a genius way to engage the public and leveraging on the most powerful marketing tool out there, Word Of Mouth and creating a community.
However, with all the positives, comes with some setbacks. Considering the continuity of geo political tensions, threatened tariffs and uncertainty, NIO might struggle to expand internationally, as its battery swaping technology requires complicated logistics and infrastructure to be in place. Looking at its fundamentals, it is still not a profitable company, which is further emphasized by the owner in the youtube video.
So with that said, this move made by me is a pure investment in the potential and outlook of NIO. Based on fundamentals, it is definitely a company you should not invest in. But I am convinced by the future potential and the great investment by the owner in the infrastructure and technology to make sure NIO would be at a very good standing once the EV space boom in the future. I am prepared to lose everything that I invest in this company as it is still considered a small cap at this point.
So this is my analysis and thesis on NIO. Thank you for reading and follow me for more analysis and options trade that I make daily.
@madluvyz - Specialist in using TA to sell options and swing trade.šŗ
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