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JB
Jason Bellier
@neostonks · Aug 1

Electric vehicle (EV) manufacturer $NIO seems to be enjoying the fruits of a particularly generous Chinese government of late. China's National Development and Reform Commission "urged local governments to ease restrictions on car purchases and introduce measures to encourage new car purchases."

This includes the use of electric vehicles in less metropolitan areas, as well as expanding the country's charging infrastructure. This should be one of the main reasons why Nio extended its growth streak yesterday, breaking the $15 mark for the first time in a really long time.

WS
Willard Spencer @willardspencer Aug 1

I'm looking now and I see -4.5%, so they're not doing so great.... :)

JB
Jason Bellier @neostonks Aug 2

After +50% for one month? They can lose 4.5%, I'm still cool 😀

DD
Daniela Duong @danieladuong Aug 1

Does this somehow increase the state's share in society? Or is toneco like our subsidies?

JB
Jason Bellier @neostonks Aug 1

Rather, it is indirect support from the Chinese government in the form of subsidies and calls on local governments to encourage the purchase of EVs and the expansion of charging infrastructure.

DM
Darius Moore @dariusmoore Aug 1

I'm a Nio fan, I saw it on the German autobahn. Still a very long way to 35-40+ USD.

JB
Jason Bellier @neostonks Aug 1

It certainly is, it's yet to be profitable, hopefully as early as 2024. But their plans are big, I'm not worried about them not getting to that $35 over time.

RB
Ralphie Barlow @ralphiebarlow Aug 1

I read that there is already speculation about expansion into the US. That, along with the company's profitability in the coming years, could be a turning point.

JB
Jason Bellier @neostonks Aug 1

I've seen something too, but it's unofficial news, so we'll have to wait for confirmation 😄

MD
Monday Dayton @mondaydayton Aug 1

I'm surprised at how companies are going along with this policy now, even Alibaba has picked up nicely. Well, I'm still scared of the local world but it's probably a mistake, I was already thinking when $NIO was at $12-13, that's a nice growth, but I see it has already broken $15 and it can go higher. Too bad I didn't buy when I had the chance. Congrats to those who are holding. 👍

JB
Jason Bellier @neostonks Aug 1

I think that the political risk as far as China itself is concerned is slowly receding, they simply need growth and stimulus. There is no reason to throw sticks there now (not that there was any reason to in the past).