Nio Stock is massive theft again due to wider external issues

In short, there are currently a lot of things to like Nio (NYSE:NIO) Stock.

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Yes, Chinese stocks still pose a lot of risk as the delisting issues become more serious than ever. Political machinations also play a role in Nio’s current issues.

But given a bit of positivity, investors really have a strong opportunity ahead of them right now.

The reason to believe in Nio is both in the optimism after the annual Nio de Nio Day event and in some good old fundamentals. If you believe it, there is a reasonable bullish case for the Nio stock.

But first, it’s necessary to understand why Nio seems underrated right now.

Real issues

You can’t really understand why Nio is currently undervalued without the larger context surrounding it. There is pressure on Chinese companies, it’s no secret. Beijing has cracked down on its local champions, especially those in the tech sector.

One of the most important news of recent times, which comes into play in this discussion, is Didi Global (NYSE:HAVE I GOT) plans announced remove from the list New York Stock Exchange a few weeks ago.

This news hit other Chinese companies, including Ali Baba (NYSE:BABA) and JD.com (NASDAQ:JD) more difficult than Nio, but it set the scene. It certainly didn’t help Nio at all.

American Politics

Then, on top of this news, there was political news that US Senator Joe Manchin decided he would not support President Joe Biden’s Build Back Better bill. This essentially harpooned the bill and its chances of passage.

The Build Back Better bill included tax credits for all electric vehicle manufacturers. It doesn’t affect Nio as it doesn’t sell vehicles in the United States, but the news has lowered EV stocks across the board, Nio included.

These are just a few of the larger catalysts that have driven Nio stock prices to their lowest levels this year. And for those who want to see the bright side, a strong opportunity is clearly present.

Fundamental strengths of the NIO action

The price of any individual action depends on a mixture of external strengths and fundamental strengths and weaknesses.

Fortunately for Nio, he has strengths. Almost every time I write about the company it seems like I notice how well it continues to grow. This means that I continue to be impressed with the company’s ability to increase deliveries.

November was no different. In my mind, the most impressive statistic on Nio is its total shipments this year. As of December 1, the company had delivered 80,940 vehicles this year. This is an increase of 120.4% from the same period a year ago.

Growth in November was not as strong as since the start of the year overall, but it was impressive nonetheless. Nio delivered 10,878 vehicles during the month, 105.6% more than in November 2020.

Anyone can go on and on about how Nio continues to perform well through these type of metrics. But investors should really think about it because that’s what really matters.

NIO day

Then, on December 18, the company held its NIO day 2021. It has released its plans for the ET5 sedan, which will be available in September 2022.

It will also be available with a monthly subscription service. In addition to this news, Nio also announced that the start of orders for the ET7 sedan will begin on January 20.

In short, most analysts believe that Nio is in a strong position. However, his problems are simply the ones that remain beyond his control.

Investors have a choice: believe the external stories or follow the fundamentals. If you do the latter, it could mean that you are capitalizing on stocks that are expected to reach around $ 60 relatively soon.

This is what Nio basically has in store. I continually beat the drums for Nio because I fundamentally believe in his growth story. It is not slowing down and now is the time to capitalize.

As of the publication date, Alex Sirois does not have (directly or indirectly) any position in any of the titles mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Shirlene J. Manley