Published on 18 Jan 2022 on Zacks via Yahoo Finance

Still Waiting for the Right Entry Point? Buy NIO Now

NIO Inc. NIO has had an unimpressive run on the bourses in 2021, with shares underperforming the industry (-35% vs +2.6%). The China-based electric vehicle (EV) maker took a beating owing to the global chip crisis, equity offerings by the firm and regulatory concerns in China. Broader selling pressure on U.S.-listed China stocks after Didi Chuxing announced plans to delist from the NYSE in less than six months after its IPO amid regulatory pressures had a negative impact on NIO. Fears of potential delisting of China EV stocks spooked investors last month. In December alone, shares of NIO tanked 17.5%.

While greater scrutiny on U.S.-listed China companies could still be a matter of minor concern but it’s only a transitory issue and shouldn’t hold you back from investing in the rising EV star of China, considering its solid long-term prospects. With NIO currently 52% off its 52-week high, does this represent a buying opportunity? We believe so. Since the stock is likely to rebound in 2022 on the back of several positive catalysts, it makes sense to buy the dip in NIO.

Let’s discuss why we think this year is likely to bring better tidings for NIO.