Nio Inc, the EV producer from china fell 11.9% in a singapore day on Friday after a rough run since Dec 2021. It is currently trading at US$32.15 after hovering around $40 to $42 for most of November. Both prices are a far cry from the highest trading price of $66.99 for the year.
Before we look at the prices further, let us look at some financial fundamentals. Nios’s revenue has been increasing each quarter with the 3rd quarter of 2021 standing at $.81B. While Nio is producing and selling cars, it has yet to make a profit and is making losses of 2.8B as of the 3rd quarter of 2021. In terms of sales.
Nio announced that it delivered more than 10,000 vehicles in Nov 20221. In 2022, the company is expected to start shipping a new flagship ET7 Sedan and laugh at least 1 to 2 new sedans. All these bodes well for those placing their bets on Nio.
So why did Nio fall by 12% today. It came on the news that DIDI global has announced plans to delist itself from the New York stock exchange in response to a report that states that foreign companies listed in the United States may be delisted if their auditors do not comply with requests for information from US regulators.
Fundamentally, NIo is still a robust and strong company who will continue to see growth regardless of the stock market volatility. It is a good stock to invest in right now at merely $2 off the year Low of $30.71 provided you can stomach the possibility of delisting. If you wonder what happens when a company delist, DiDi has announced that the shares will be converted to tradable shares in another stock exchange. This means that you are unlikely to lose all stock value. But it remains to be seen if the prices of the shares will remain the same if it is transferred to another stock exchange with a much lower trading volume.