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Yahoo
3 days ago
- Automotive
- Yahoo
NIO vs. TSLA: Which EV Stock Has More Charge for the Future?
For years, Tesla TSLA has been the face of the electric vehicle (EV) revolution. Today, it's still a giant, with a staggering $1 trillion market cap and a growing focus on technology — from robotaxis to artificial intelligence. But the road ahead isn't as smooth as it once seemed. Rising competition, shifting political dynamics, and missed or delayed timelines have taken some shine off Tesla's once-unshakable dominance. On the other hand, there is NIO, Inc. NIO — often dubbed the 'Tesla of China'— which has been on its own wild ride. The company's market cap might be a fraction of Tesla's, at just over some $8 billion, and it's still not profitable. However, it operates in China, the world's largest and most EV-friendly market. And while challenges remain, NIO seems to be inching forward with a clearer focus and renewed energy. No doubt, Tesla is aiming big and positioning itself more like a tech powerhouse than just a carmaker. But NIO is also doubling down on the EV game in a supportive domestic environment. With U.S. President Trump's tough stance on EVs and shifting investor expectations, the race is far from over. Shares of both Tesla and NIO have declined year to date, underscoring the cautious mood around EV stocks. Image Source: Zacks Investment Research Let's delve into the key drivers and challenges to assess which stock deserves a spot in your portfolio now. NIO may be a small player compared to global giant Tesla, but the Chinese EV maker is stepping up its game. Its growing vehicle lineup — including models like the ES6, ET5T, ES8, ET9 — is helping the company expand its footprint in the competitive electric vehicle landscape. But NIO isn't relying solely on its namesake brand to drive future growth. It has launched two sub-brands — ONVO, which targets the mainstream EV market, and Firefly, aimed at smaller premium vehicles. ONVO's first model, the L60, is already on the roads and receiving positive feedback. Two more ONVO vehicles, the L90 and a yet-to-be-named model, are set to hit the market later this year, potentially widening NIO's customer base. Firefly's first model commenced deliveries last month. In the first quarter of 2025, NIO delivered over 42,000 vehicles — a 40% jump year over year. Management aims to double deliveries in 2025, powered by new models and broader brand reach. The company's signature battery swap technology remains a key differentiator, with more than 3,200 stations and a new partnership with battery giant CATL to expand the network further. Vehicle margins are improving. The metric rose steadily through 2024, reaching 13.1% in the second half, and NIO is aiming for a 20% margin this year for its core brand. Still, challenges remain. NIO reported a net loss of more than $3 billion in 2024, and while management targets breakeven by the fourth quarter of this year, intense price competition in China and high operating costs pose a risk to that goal. Rising SG&A expenses and a stretched balance sheet—with shrinking cash reserves and high debt—add further pressure. Despite these hurdles, NIO's innovation, expanding portfolio, and access to China's massive EV market offer compelling reasons to watch the stock closely. Take a look at the consensus estimates for NIO's bottom line in 2025 and 2026. Image Source: Zacks Investment Research Tesla's journey from EV pioneer to tech powerhouse has hit a bumpy patch. Once the undisputed leader of the EV race, the company is now grappling with slowing growth in its core business. Deliveries are down, competition is fiercer than ever, and Tesla's once-fresh lineup is beginning to show its age. In the first quarter of 2025, Tesla delivered 336,000 vehicles—a 13% year-over-year drop. Amid escalating global tariffs and rising uncertainty around its China operations, the company chose not to reaffirm its earlier forecast of modest growth for the year and said it would revisit its 2025 delivery targets in the second-quarter update. Complicating matters is the growing discomfort around CEO Elon Musk's political strides, which raised doubts about his focus on the company's core operations. Nonetheless, its energy generation and storage segment, while still small, is gaining momentum and delivering higher margins than the EV business. Financially, Tesla remains strong. It ended the first quarter of 2025 with a hefty $37 billion in cash and a low debt-to-capital ratio of just 7%, giving it room to fund future bets. And those bets are big. Tesla is preparing to launch its first robotaxi service in Austin by next month—a move that could mark the company's most meaningful step into full autonomy yet. It's also building out the Cybercab, a two-seater self-driving vehicle expected in 2026, and continues to develop Optimus, its humanoid robot. These ambitious projects could define Tesla's next era. But they also come with high execution risk. For now, the company's challenge is to steady its EV business while proving that its big ideas can turn into big results. Whether that comeback begins in 2025 is the question investors are asking. Take a look at the consensus estimates for TSLA's bottom line in 2025 and 2026. Image Source: Zacks Investment Research At this stage, neither NIO nor Tesla appears to be a compelling buy. But if you're choosing between the two, NIO looks like the better name to keep on your radar in the near term. NIO shows some promise with improving vehicle margins and an expanding brand portfolio, though it remains unprofitable and faces stiff competition and financial constraints. Investors would be wise to wait for NIO's upcoming quarterly results next week to assess whether it can maintain its delivery guidance and continue margin progress. Tesla, meanwhile, is betting big on future tech with its robotaxi rollout. But with shares already up 35% in a month—reflecting much of the hype—this may be an opportune time for existing investors to book profits. It's best to stay on the sidelines until Tesla's robotaxi launch proves it can meet expectations. Tesla currently carries a Zacks Rank #5 (Strong Sell), while NIO has a Zacks Rank #3 (Hold).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Automotive
- Yahoo
£10,000 invested in NIO stock 2 months ago is now worth…
NIO (NYSE: NIO) stock has fallen 13.8% over the past two months. As such, a 10-grand investment made towards the end of March would now be worth about £8,620 (discounting currency moves). While that might not sound too dramatic, it continues a worrying downwards trajectory that has been going on for a long time. Indeed, since peaking at $62 in January 2021, the NIO share price has crashed 93% and now trades for less than $4! This is in complete contrast to Tesla (NASDAQ: TSLA), whose shares are up more than 500% over five years. NIO was dubbed the 'Tesla of China' after it first appeared on the stock market in 2018. In hindsight, we now know it's nothing of the sort. Tesla is a global company whereas NIO's sales almost all still come from China. It's taking tentative steps to expand abroad, but the brand is not well-known outside of its home market. Last year, the US EV giant delivered 1.8m cars versus NIO's 220,000. Moreover, Tesla is vertically integrated and is profitable. NIO has relied on manufacturing partners in the past and remains heavily loss-making. It lost over $3bn last year on $9bn of revenue. These differences explain why Tesla's market value is now approximately 132 times larger than NIO's. Having said that, NIO is at least growing at the moment, unlike Tesla. In Q1, it delivered 42,094 vehicles, a year-on-year increase of 40%. In March, the firm delivered 15,039 vehicles, and around a third of those were from its new family-oriented brand ONVO. This seems to set Chinese EV firms apart from their global rivals. They're more aggressive in launching multiple brands. For example, BYD, Geely, and NIO have all created separate brands to target the mass market, mid-range, and luxury segments. They do this because the enormous Chinese EV market is ultra-competitive and fast-moving. It's easy to quickly get left behind, as some Western brands have found. So, from this point of view, NIO should be commended. However, I'm not sure how successful these brands will be outside of China. Some may succeed, but most will probably fail. Will ONVO succeed in Europe? I have no idea. The market is so competitive that I find it hard to gauge whether NIO as a company has any sort of durable long-term advantage. The stock is trading at just 0.88 times sales. If NIO had a clear path to profitability, I'd say that looks quite attractive. However, the path is as murky as it has ever been, in my opinion. Analysts currently see red ink spilling for at least another three years. Now that the global EV market has become populated with multiple players, I struggle to get excited about investing in this space. Tesla is facing massive sales pressure while NIO is still burning through cash. I ultimately see both as risky stocks. Weighing thighs up, I think there are more promising opportunities out there today for my portfolio. The post £10,000 invested in NIO stock 2 months ago is now worth… appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Ben McPoland has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Arabian Post
19-05-2025
- Automotive
- Arabian Post
ONVO L90 Sets New Benchmark for Spacious Electric SUVs
NIO's sub-brand ONVO unveiled its flagship SUV, the L90, at Auto Shanghai 2025, marking a significant stride in the electric vehicle market. Positioned as a full-size, six-seat SUV, the L90 is built on NIO's NT3.0 platform and features a 900V high-voltage architecture, aiming to cater to families seeking spacious and efficient electric mobility. Measuring 5,145 mm in length, 1,998 mm in width, and 1,786 mm in height, with a wheelbase of 3,110 mm, the L90 offers a substantial presence on the road. Its design incorporates a distinctive 'shark nose' front, frameless doors, and hidden door handles, contributing to a sleek and modern aesthetic. The vehicle's exterior is further enhanced by the 'Star Path Illumination' pixel headlight system, which supports adaptive lighting functions and customizable light patterns. One of the L90's standout features is its storage capacity. The SUV boasts a 240-liter front trunk, or 'frunk,' which ONVO claims is the largest among current models in China. This front compartment can accommodate two 20-inch suitcases and a smaller bag, while the rear cargo area is designed to hold seven standard 20-inch suitcases, even when all six seats are occupied. Under the hood, the L90 offers both rear-wheel-drive and all-wheel-drive configurations. The rear-wheel-drive model is equipped with a 340 kW motor, while the all-wheel-drive variant adds a 100 kW front motor, resulting in a combined output of 440 kW . Both versions come standard with an 85 kWh battery pack, available in lithium iron phosphate and ternary lithium chemistries. The SUV also supports NIO's battery swap technology, allowing for quick battery replacements at designated stations. See also Toyota Adopts Huawei's HarmonyOS for New Electric Sedan The L90's suspension system features a double-wishbone independent front suspension and a multi-link independent rear suspension, complemented by an air suspension setup for enhanced ride comfort. Additionally, the vehicle includes electric side steps and a thick D-pillar design, contributing to its robust and commanding appearance. Inside, while the full interior has yet to be revealed, ONVO emphasizes the L90's focus on space efficiency and intelligent mobility systems. The SUV is designed to accommodate various travel scenarios, supporting configurations like 'six passengers and ten suitcases.' The vehicle also incorporates a pure vision-based autonomous driving solution, indicated by the presence of two roof-mounted cameras. The L90 is scheduled for official launch in the third quarter of 2025. ONVO aims to position the SUV competitively in the market, targeting middle-income families seeking a spacious and technologically advanced electric vehicle. The brand has set ambitious sales targets, with plans to achieve 20,000 monthly deliveries by March 2025.
Yahoo
16-05-2025
- Automotive
- Yahoo
Is it Time to Snap Up NIO Stock While it's Still Trading Cheap?
NIO Inc. NIO, once hailed as the 'Tesla of China,' is now trading at just around $4 per share, down roughly 94% from its all-time high attained in 2021 and even below its 2018 IPO price of $6.26. For a company that once captured investor imagination with bold electric vehicle (EV) ambitions, the fall has been steep. In 2018, NIO's debut on the NYSE was met with considerable excitement. Fast forward to 2025, and the company is operating at a much larger scale with a wider vehicle lineup, new brand launches, and long-term plans still intact. Yet, the stock remains under pressure. So far in 2025, NIO shares have slipped nearly 8%. Meanwhile, domestic peers Li Auto LI and XPeng XPEV have surged 19% and 74%, respectively. XPeng, in particular, has gained traction thanks to its aggressive push into autonomous driving and robotics. Image Source: Zacks Investment Research From a valuation perspective, NIO currently trades at a forward price-to-sales ratio of 0.54, well below Li Auto's 1.1 and XPeng's 1.53. The market seems to be pricing in more risk for NIO despite its growth initiatives. That brings up a key question: Is the current discount an opportunity or a value trap? Image Source: Zacks Investment Research Let's delve into NIO's growth drivers and challenges to evaluate if investors should park their cash in the stock at this time. NIO's vehicle lineup includes ES6, ET5T, ES8, EC6, ES7, ET5, ET7, EP9, EVE, ET9 and EC7 models. In late March 2025, the company commenced delivery of the NIO ET9. But it's not just the namesake brand driving growth anymore. To tap into different segments of the EV market, NIO has launched two sub-brands: ONVO, targeting the mainstream market, and Firefly, aimed at smaller premium EVs. ONVO's first model, the L60, has already hit the market and is seeing a positive response. The brand's second model, the L90, is scheduled for delivery in the third quarter of 2025, followed by the launch of a third ONVO vehicle in the fourth quarter. Firefly's first model commenced deliveries last month. In April 2025, NIO delivered 23,900 vehicles, up 53% year over year. This included 19,269 units from the main NIO brand, 4,400 ONVO units and 231 Firefly vehicles. While the growth is encouraging, it still lags behind peers. Li Auto delivered 33,939 units last month, while XPeng saw 273% growth with 35,045 units. NIO expects to double its deliveries in 2025, driven by fresh models and expanded brand reach. One of NIO's standout innovations is its battery swap technology, allowing users to swap batteries in minutes instead of waiting to charge. With over 3,200 swap stations in place and a new partnership with CATL to build the world's largest battery swap network, NIO is doubling down on this unique selling point. On the margin front, things are moving in the right direction. Thanks to component cost reductions and better scale, vehicle margins have improved — from 9.2% in first-quarter 2024, to 12.2% in the second quarter to 13.1% in the third quarter and the fourth quarter each. For 2025, the company is targeting a vehicle margin of 20% for the NIO brand. Despite these operational improvements, NIO remains deep in the red. The company posted a net loss of more than $3 billion in 2024. Management expects these losses to narrow this year and has set an ambitious target to break even by the fourth quarter of 2025. Achieving breakeven would mark a major turnaround—but it won't be easy. China's EV market is highly competitive, with price wars putting pressure on all players. For NIO, hitting profitability amid these dynamics is still a big 'if.' There are also cost issues. In the last quarter of 2024, SG&A expenses jumped 22.8% year over year due to rising headcount and more aggressive sales efforts. This trend is expected to continue, potentially weighing on margins. On top of that, financial constraints are tightening. NIO's long-term debt-to-capital ratio stands at 0.76, well above the industry average of 0.27. And its cash reserves fell sharply, from RMB 32.9 billion in December 2023 to just RMB 19.4 billion a year later. This raises concerns around potential fundraising and possible shareholder dilution. NIO's growth story is still alive. Its push into new market segments with ONVO and Firefly, rising vehicle margins, and expanding battery swap network are all promising signs. If management can deliver on its breakeven target and scale up production efficiently, the stock could rebound over the long term. The Wall Street average target price for NIO indicates a 17% upside from the current levels. Image Source: Zacks Investment Research But right now, uncertainty around profitability, competitive pressure and a shrinking cash cushion make the stock a risky bet for new investors. For existing shareholders, holding on may still make sense given the long-term potential. But for those considering a fresh position, it might be wise to wait for stronger financial signals and execution milestones. NIO currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIO Inc. (NIO) : Free Stock Analysis Report Li Auto Inc. Sponsored ADR (LI) : Free Stock Analysis Report XPeng Inc. Sponsored ADR (XPEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Automotive
- Yahoo
The Zacks Analyst Blog Highlights Tesla, NIO, Li Auto and XPeng
Chicago, IL – May 9, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Tesla's TSLA, NIO Inc. NIO, Li Auto LI and XPeng XPEV. Here are highlights from Thursday's Analyst Blog: Tesla's grip on the world's largest EV market is slipping. In April, the company sold just 58,459 vehicles in China, down nearly 6% from a year ago. The figure also reflected a steep 26% drop from March, according to data from the China Passenger Car Association. In the first four months of 2025, Tesla's China sales have declined over 18% year over year to 231,213 units. The numbers are raising red flags. While local rivals are posting strong growth, Tesla is struggling with an aging product lineup and rising competition. The recent Model Y refresh did little to spark excitement, and public perception of the brand, soured by CEO Elon Musk's controversies amid his political moves, isn't helping. Weak delivery numbers across all key markets (including the United States, China and Europe) are making it harder to believe that Tesla can report sales growth for full-year 2025. Ongoing global tariff uncertainty and weakness in China remain concerns, prompting Tesla not to reaffirm its 2025 delivery guidance. Musk had already walked back his 2025 vehicle growth target from 20-30% to more modest expectations on the fourth-quarter earnings call. But now he has refrained from reiterating even that modest growth. Meanwhile, the excitement around its upcoming robotaxi reveal on June 1 may not be enough to distract from the core issue — falling EV sales. Tesla may call itself a tech company, but without strong vehicle demand, the story falls apart. Investors' patience on the stock is already running out and such weak numbers will only worsen things. Unless Tesla can reverse its sales decline, its stock could be in for a rougher ride. While Tesla deliveries in China dropped, companies like NIO Inc., Li Auto and XPeng saw a sales surge. NIO delivered 23,900 vehicles in April, demonstrating 53% growth on a year-over-year basis. The total deliveries comprised 19,269 units of the NIO brand itself. NIO's ONVO and Firefly brands are expected to boost deliveries further. XPeng's deliveries totaled 35,045 in April, increasing 273% year over year and exceeding 30,000 units for the sixth consecutive month. XPeng MONA M03's cumulative delivery surpassed 100,000 units, and its XPENG P7+ model achieved its 50,000th vehicle production milestone in just five months from its launch. LI Auto delivered 33,939 vehicles last month, up 31.6% year over year. In the first four months of 2025, Li Auto's deliveries totaled 1,260,675 units. Shares of Tesla have lost more than 30% year to date. From a valuation standpoint, Tesla trades at a forward price-to-sales ratio of 8.41, way above the industry. TSLA carries a Value Score of F. The Zacks Consensus Estimate for Tesla's 2025 earnings implies a 22% drop year over year. The stock currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report NIO Inc. (NIO) : Free Stock Analysis Report Li Auto Inc. Sponsored ADR (LI) : Free Stock Analysis Report XPeng Inc. Sponsored ADR (XPEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
