To The Moon

NIO stock is coming off a difficult five year stretch, with the share price down about 87.9%, yet current valuation checks send a more balanced signal. The Discounted Cash Flow (DCF) intrinsic value estimate points to the shares being roughly in line with fair value, while market based multiples suggest the stock screens as undervalued. Over the past five years, NIO has fallen about 87.9%, which means any case for the stock today rests more on what investors are willing to pay for future...

Earlier this week, Singapore’s sovereign wealth fund GIC filed a lawsuit against NIO, alleging the automaker unlawfully recognized battery lease revenue through a related party, raising concerns over financial transparency. This legal dispute comes as NIO reports two consecutive months of record electric vehicle deliveries and significantly ramps up production capacity with new models and factory expansions. We'll consider how the new legal risks surrounding revenue recognition could...