How to Buy Nio Stock in 2021
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 and a step-by-step guide to buying Nio stocks. Also, you will find out how much to invest in Nio shares, and how to have access to them.
Learn How to Buy Nio Stocks in 3 Easy Steps
Find a Broker
The first step is to find a brokerage firm that lets you buy or sell 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, 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 stock 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, the 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 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.
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 high-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 innovative, practical, and cost-effective transportation solutions.
Although the company is operating in China, Nio has considered expanding its products to other markets, too. For instance, it has recently confirmed that Nio vehicles will be available in Norway in July 2021. These expansion plans make the company an attractive asset for investors looking for growth stocks.
History of Nio
Nio was founded in 2014 by William Li, the Chairman of NextEV and Bitauto. Shortly after its foundation, the company received financial support from numerous companies. Two years later, the Chinese electric car company obtained an autonomous vehicle testing permit to begin testing its cars on public roads.
In April 2020, the company went through financial distress as it was unable to sell its vehicles. A group of Chinese investors funded Nio with approximately $1 billion with the condition to transfer some of its assets to a new subsidiary.
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?
There are several aspects you should consider before deciding whether Nio is a suitable asset for your portfolio. Let’s consider it’s investment potential, what type of investors should buy these shares, and how much you should invest in the business.
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. So, you may consider that there is huge investment potential given its expansion plan regarding Europe.
However, predictions with maximum accuracy 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. Alternatively, the company may not be able to stay ahead of the competition.
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. For example, 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.
Additionally, it’s worthwhile to take into consideration that the company has major expansion plans. This could fit in with a growth strategy for long-term investors.
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 and financial situation. You also need to consider the dollar amount you are willing to risk investing in growth stocks.
Many new investors start with a small amount of money in the beginning, based on their financial situation. You should always make sure that you do not compromise your daily necessities, so it’s advisable to invest anything you could save that exceeds your 3-6 months’ net pay.
How to Buy Shares in Nio Stock?
There is more than one option when it comes to buying Nio stock. You can opt for a broker if you want a diversified portfolio or feel comfortable with their trading terms and conditions. Another alternative is direct stock purchase plans or DSPP, which are discussed below.
It’s also highly recommended to consult the list of top broker choices that was included at the beginning of this article.
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 be up to your expectations and, for this, it is necessary to learn more about features, fees, commissions, customer support, educational section, and other perks they may offer to investors.
Opening an account should only take a few minutes as long as you have access to your personal information. You may have to provide your name and other details, along with financial questions and information, to help the broker customize your experience. In some cases, your chosen broker may request you to submit a copy of your ID for verification purposes before granting you full access.
Buy Nio Shares with a Direct Stock Purchase Plan (DSPP)
A direct stock purchase plan or DSPP is another option that allows you to buy Nio shares. Unlike a brokerage firm, which offers intermediary services and a broad range of stocks, a DSPP enables you to purchase shares directly from Nio, so you do not need a brokerage firm to make your investment.
DSPPs come with several benefits, such as lower fees. If you plan to make several transactions, these small amounts may add up, though. Another benefit will be that it is an easier option if you are a long-term investor interested only in Nio, without planning to buy shares in a plethora of other companies.
Frequently Asked Questions
Nio may represent an excellent opportunity for numerous investing strategies. However, you should clearly define your goals and verify whether Nio may be up to your expectations.
Nio has had steady growth since its foundation. It has been recovering from the pandemic rapidly, reaching an all-time peak in January 2021. However, it is also true that the company went through hardship at the beginning of 2020. Still, the financial aid received from the Chinese group of investors and innovative market solutions helped it recover and strengthen its performance.
Yes, but it depends on your timing, knowledge, and strategy. The electric car market is still in its infancy, but some investors may consider it extremely rewarding in the long run. In order to make money trading Nio, you should analyse the stock, stay up to date with the latest news, and place your investment at the right time.
The best platform will depend on your needs. It is essential to look at their tools and features that might help you invest easily, such as a user-friendly platform, guides on placing trades, and more.
The company is listed on the New York Stock Exchange, so trading hours are from 9:30 A.M. to 4:00 P.M. (EST).
Nio has been listed on the New York Stock Exchange since September 2018.