Electric vehicles are here to stay, and NIO seems to be an attractive option for both traders and investors. Headquartered in China, NIO designs and manufactures high-performing electric cars for consumer use.
In this article, we will discover everything an investor should know about NIO, a step-by-step guide to buy NIO stocks. Also, you will find out how much to invest in NIO shares, how to have access to them, and much more.
Table of Contents
Learn How to Buy NIO Stocks in 3 Easy Steps
Find a Broker
The first step is to find a brokerage firm that provides access to NIO stocks. Most online brokers have a quick registration process. You need to provide your personal information, such as your name, email, and phone number in order to open an account. You might also have to answer trading questions and include ID verification.
Analyse a NIO Chart
Analysing the NIO stock chart is crucial for your next trading decision. Understanding volume and price history is important to maximize gains. Through analysis, you can predict future share price performance. Remember to look at the trend line, support and resistance levels, along with any other indicators offered by your chosen broker.
After analysing the NIO chart and deciding when it is your moment to enter the market, make sure your account is funded. When you deposit money, you may have to check if there are any extra charges associated with currencies, deposit or withdrawal fees, minimum amount to be deposited, and any other commissions. This will help you understand how much your trade will cost in addition to the share price.
NIO Company Overview
When making trading decisions, it’s always important to find out more about your chosen companies. This will help you determine if they are a good choice for your objectives.
NIO is a multinational automobile company that specializes in premium, high-performance electric vehicles. It was first valued at $1.8 billion in 2018. As of 2021, the company reached a market cap of $67 billion.
The company provides high-end automobile technology. NIO car owners do not only have access to highly performing vehicles, but they can also choose to purchase a home charging power system or use one of the many stations available. NIO vehicles only require five minutes to be fully charged, providing consumers with practical and cost-effective transportation solutions.
NIO Business Model and Revenue Streams
NIO aims to lead the way in the automobile industry, providing vehicles that are electronic, smart, and autonomous. As of this writing, they offer five premium cars suitable for different purposes and needs. These models aim to transform users’ life into a comfortable, high-end experience using the latest technology.
Although the company is operating in China, NIO has considered expanding its offer to other markets, too. For instance, it officially confirmed that NIO vehicles will be available in Norway in July 2021. These expansion plans make the company an attractive investment for investors looking for growth stocks.
History of NIO
NIO was founded in 2014 by William Li, the Chairmain of NextEV and Bitauto. Shortly after its foundation, the company received financial support by numerous companies.
In 2017 they introduced their first electric SUV. Now, they offer three of these premium vehicles: ES8, ES6, and EC6. However, before getting into some of the best-in-class electric technology for SUVs, they sold supercars, such as 2016 EP9.
Brokers That Offer NIO Shares
We have shortlisted the best brokers that offer access to NIO shares. They were chosen according to their performance throughout the years, reputation, and access to investment tools.
Should I Invest in NIO Stock?
NIO Stock Investment Potential
The high-end automaker went public on the New York Stock Exchange in 2018. Its stock price has increased more than 1,500% since then. There is huge investment potential in this stock given its expansion plan regarding Europe.
However, accurate predictions are difficult to make. There is always a risk of unexpected events that will negatively impact NIO’s performance. For instance, the Norwegian market may not be highly responsive to NIO vehicles or another competitor could provide a better offer.
What Kinds of Investors Should Include NIO in Their Portfolios?
When considering stocks, you should ensure that they match your investment strategy, timeframe, and expected risk and returns. It is important to note that most of their revenue comes from their automotive division. Also, they do not manufacture themselves, but partner with the Jianghuai Automobile Group.
If you believe that the electric cars produced by NIO represent the future of the transportation industry, this company may be suitable for your portfolio.
How Much Should I Invest in NIO
What you invest in NIO will depend on your investment goals and, of course, your available account balance. It is important to note that their one-year target is $55.05. So, you will need to at least have the previously mentioned amount to own one stock. If you were to use $55 as your average and you wanted 100 NIO stocks it would be $5,000.
When NIO was first introduced into the market, they sold their stocks for a little bit over $6. Since they have plans of expanding into other markets, it is possible that they will continue to rise. It is important to be on top of the market to be able to speculate with knowledge and make good decisions for your future.
How to Buy Shares in NIO Stock?
There is more than one option when it comes to buying NIO stock. You can either go with a broker if you want a diversified portfolio or you are comfortable with their trading terms and conditions. Another alternative is direct stock purchase plans or DSPP which we will talk about below.
Whichever you decide, we recommend that you take another look at the list we have included in this article above with our top broker choices with access to NIO stock.
Buy NIO Shares Using a Broker
A broker is an intermediary between you and the securities exchange. In other words, you must find a broker that has NIO stocks available. The broker should fit your expectations and for this, it is necessary to look at their features, fees, commissions, customer support, education section, and more.
Opening an account should be digital, and fast. It should ask for basic personal data, and maybe financial questions and information to get to know you more. They might want to verify the information you include before granting full access.
Buy NIO Shares with a Direct Stock Purchase Plan (DSPP)
A direct stock purchase plan or DSPP is when you buy stock directly from a company or third-party administrator like a transfer agent. With this program, you will not need a broker. This purchase method could be attractive for individual long-term investors that want a strong shareowner base and want to avoid using a broker.
DSPP charges low fees. They could ask for an initial fee or a very small amount each time you purchase a NIO stock. It is still important to understand how the fees work since they could add up.
Frequently Asked Questions
Buying a NIO stock will depend on your account balance, your goals as a trade, and if you want to trade through a broker or with a direct stock purchase plan (DSPP).
NIO has had steady growth since it first started. It has been recovering from the COVID accomplishing its largest sales in January 2021. However, it is also true that the company was having problems at the beginning of 2020, but financial aid from the Chinese government and innovative market solutions put the company on the right track.
Yes, it will depend on how you manage your account balance and speculate. The market is risky, but it can give great returns if you decide your next move with knowledge. In order to make money trading NIO, you should do your own analysis, read opinions and price targets of investment firms and finally, decide when to open a trade.
The best platform will depend on your needs. It is important to look at their features that might help your trading like customizable interfaces, types of charts, tools, risk management, and more.
Following the NYSE, the core trading hours are from 9:30 a.m to 4:00 p.m. You can also trade pre-market hours (4:00 a.m to 9:30 a.m) or after hours (4:00 p.m to 8:00 p.m).
NIO has been listed on the New York Stock Exchange since September 2018.