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Shares in Nio (NYSE: NIO), China’s Premium Electric Vehicle Maker, Has Blasted The Doors To 2020 Starting the year at $ 4, NIO shares skyrocketed through year-end and ended the year 2020 at $ 50 Mark it as one of the best years of a stock in recent times (subscribers to the Daily 10X Stock Report were able to take part in this huge rally as I recommended NIO stocks to readers when they were trading at just $ 4)

But stocks aren’t rising in straight lines.Following a blistering start to 2021, NIO has trended down since then, losing more than 30% of its value in the past three weeks, thanks to general market fear of rapidly rising interest rates

This recent weakness of NIO is an opportunity – and now is the time to buy

Rising interest rate fears are both exaggerated and short-lived In the meantime, NIO recently released a strong delivery update, implying that business momentum continues to pick up, and the outlook strongly suggests that NIO is positioned for another breakout year in 2021 and both the fundamentals as well as the specs strongly support the theory that NOK is a great buy under $ 50

So forget about the noise and buy the dip. This stock will go up to $ 100

The recent rise in interest rates – the 10-year government bond yield is up over 1.3% from 11% at the start of the month – is something to watch closely, however, the impact on the market is both short-lived and exaggerated

Interest rates are currently rising due to huge fiscal and monetary stimulus This inflationary force will continue for the foreseeable future At the same time, it is fighting against much larger and more permanent deflationary forces in automation and globalization

That said, automated technology can replace millions of jobs today. Think of speech processing software that automates call centers and customer service agents. Think of self-check-out machines that automate cashiers. Think of telehealth platforms that automate hospital reception

The technology is so advanced that it is ready to replace millions of jobs At the same time, thanks to Covid-19, more and more companies are happy with the adoption of these technologies. The result is that in the next few years we will have an enormous number of economic sectors and will experience permanent job loss

Globalization is equally powerful, as the global geopolitical phase is now geared towards globalization moving back into the limelight and companies outsourcing labor and production more aggressively – keeping consumer prices low

Yes, the government is spending a lot of money. But they almost have to spend a lot of money to keep interest rates from going negative.

This is important because while higher interest rates hurt stock valuations, my numerical analysis of the relationship between interest rates and stock valuations from the 1980s found that the yield on 10-year government bonds would need to rise to 2.5% before it had a meaningful effect on the reviews has

So the recent weakness in the equity markets is a buying opportunity – especially in high-quality growth stocks like NIO stocks

If we ignore the interest rate noise and turn our attention to the business fundamentals of NIO, we see nothing but good things

NIO recently reported the delivery numbers for January. They were nothing short of spectacular225 vehicles delivered, an increase of 352% compared to the previous year This is the 10th consecutive month of triple digit growth from NIO and the best delivery growth rate year over year

That never happens in the auto market December deliveries are usually huge thanks to holiday demand as consumers are quick to buy new cars for Christmas Then January deliveries almost always fall off a cliff as the fun times end and the Holiday demand is drying up

But NIO bucked this trend in 2021, NIO’s sales rose from December to January, which speaks strongly to the momentum underlying today’s business

Zooming deliveries after twelve months are now just over 49000 – an increase of 13% over the previous month and 143% over the previous year

All in all, NIO’s business appears to not only be sustaining the robust 2020 momentum, but actually building on it. It’s only getting better here, and the outlook implies that this will only continue to improve – which of course is better days for the NIO -Share means

NIO had a strong 2020 no doubt the basics however suggest that NIO could have an even better 2021

China’s auto sales struggled in the first half of 2020 thanks to the Covid-19 pandemic and then rebounded in the second half as pent-up consumer demand and low interest rates. These two drivers will remain strong in 2021, and the year is expected to be that China’s auto sales will increase by 4%

Electric vehicles will be the epicenter of this recovery in the Chinese auto market, thanks to government support, rising supply, falling costs, and changing consumer demand, the Chinese electric vehicle market is expected to grow by an impressive 40% in 2021

The company has just launched a new premium sedan, the fourth EV model NIO has also just announced a brand new battery that significantly improves performance data such as range and charging time. In addition, the company is significantly improving its battery swap stations to with a lot more capacity to be far more efficient

In other words, NIO will vastly improve its business fundamentals in 2021 as China’s electric vehicle market catches fire

This combination ultimately implies that NIO could have a better year this year than last year

The fundamentals and specs underlying NIO strongly suggest the idea that the stock is a great buy below $ 60 here and now

On the fundamental side, NIO has a long growth phase ahead of it, as the company is developing into a globally dominant supplier of premium electric vehicles with a healthy margin profile thanks to falling battery costs and strong pricing power. In the long term, I see NIO as the second largest EV manufacturer in the World, just behind Tesla (NASDAQ: TSLA)

My numbers suggest that given this reality, Nio’s stock is worth at least $ 60 today and is likely closer to $ 70 based on the company’s earnings potential over the next decade, given that earnings potential, I see NIO in the foreseeable future Time to rise to $ 100

On the technical side, Nio stock is rapidly approaching its 100-day moving average ($ 45) – a level the stock has held since its big breakout of $ 4 in May 2020 given the robust fundamental business momentum of the Company and the favorable valuation, I don’t see that NIO will soon fall below the critical 100-day moving average

So I think the Nio sell-off is in its final stages. Bottom is near. Soon stocks will reverse their course, rising to $ 100

The big picture here is shockingly simple. Electric vehicles are taking on the world. NOK is second only to Tesla in EV technology. In the long term, NOK is a winner So Ignore the Interest Rate Noise Pay attention to the basics NOK is a great stock that is You can buy today

Instead, the best growth stock I can buy today is a company that reminds me of a young Amazon (NASDAQ: AMZN) In fact, I think buying this stock today might be similar to buying AMZN stock back in 1997 – before it went up thousands of percent

At the time of writing, Luke Lango held positions (neither directly nor indirectly) in the securities mentioned in this article

Luke Lango uncovers early investment in hypergrowth industry and puts you on the ground floor of changing mega trends around the world.This way, his 10X daily report has achieved an average return of 100% on all referrals since it launched last May, click here to see how he does it

Luke Lango uncovers early investment in the hyper-growth industry and puts you on the ground floor of changing global megatrends

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