Should You Buy NIO Stock While It's Below $5?

Many electric vehicle (EV) stocks have declined sharply from their peaks at the start of the decade. Nio (NYSE: NIO) is no exception. In early 2021, the company hit its all-time high of $63 per share, only to fall to about $4.50 today. That's an eye-watering decline of 93% in just five years as investors shifted away from the EV industry because of challenges like rising competition and trade uncertainty, especially in the U.S. market. As a Chinese company, Nio is largely shielded from the negative affects the Trump administration has had on U.S. automakers. Furthermore, its sales are growing at a rapid clip. Let's dig deeper to decide if these factors will be enough to break the stock's current slump.China is the world's largest EV market, with battery electric vehicles accounting for roughly 59% of its new car sales compared to a peak of 10.5% in the U.S. The Asian nation has accelerated adoption through favorable government policies designed to support both manufacturers and consumers. However, the downside of this has been an explosion in competition as more companies pile into the market. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool