TESLA STOCK INCREASED OVER 700% IN 2021 – HOW TO PICK THE NEXT TESLA

Tesla shares gained 743% in 2020 and rallied another 20% this year through January 14, 2021.  If in January 2020 you invested $10,000 in Tesla, you finished the year with ~$84,000!  Enough to buy any Tesla model!

Elon Musk, CEO Tesla, accomplished what many said was impossible and made the electric car business mainstream.  Thanks to Musk, every major car manufacturer has rapidly added Electric Vehicles (EVs) to their line up and numerous new manufacturers have launched. Biden’s win in the U. S. pushes federal dollars into the EVs industry, making it more attractive. Therefore, the EVs industry is a great place to identify more winners!

FIRST STEP – BUILD A WATCH LIST

As a Tesla shareholder, I spent years studying the EVs industry and utilized that knowledge to build a watch list.  I analyzed, sorted, and prioritized by ultimately picking four potential companies for further study

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EV WATCH LIST
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EV WATCH LIST

NEXT, I CHARTED AND COMPARED THE ABOVE FOUR STOCKS {see color codes on chart}

  • NIO – Chinese EV Manufacturer
  • LI – Designs and Sells Smart EV’s- China
  • WorkHorse – High-Performance Medium Duty EV Trucks- US.
  • Ford – US Auto Manufacturer.  Expanding line up to include EVs
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EV WATCH LIST

PRELIMINARY DATA INDICATED NIO DESERVES FURTHER STUDY  

Below are the factors I evaluate before investing money into a stock.

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STOCK EVALUATION FACTORS

EVALUATION OF NIO

I utilize four subscription websites (Investor’s Business Daily, Trade-Response, Morningstar, and Motley Fool. I pay ~$1,700 annual fees for these four websites. 

The good news you can find similar information for free by going to NIO’s webpage https://www.nio.com and using Yahoo Finance. 

https://finance.yahoo.com

NIO’s stock achieved > 300% gains in the past six months, and the company announced it would launch a new luxury sedan called the ET7 that will travel 625 miles on a single charge. This would be the longest distance achieved by any EV manufacturer if accurate. This new vehicle and battery have not been produced, and much technical analysis doubt this range is achievable nor affordable. 

YAHOO FINANCE – NIO’s EARNINGS

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YAHOO FINANCE – NIO’s EARNINGS

YAHOO FINANCE – NIO’s EARNINGS AND FINANCES

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YAHOO FINANCE – NIO’s EARNINGS AND FINANCES

YAHOO FINANCE – NIO’s MANAGEMENT TEAM

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YAHOO FINANCE – NIO’s EARNINGS AND FINANCES

NIO SIX MONTH STOCK PERFORMANCE

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NIO SIX MONTH STOCK PERFORMANCE

IN CONCLUSION IS NIO’s STOCK GOING: UP; DOWN; OR SIDEWAYS?

All stocks can go up, down, or sideways.  The ONLY way to make money is to select MORE stocks that go up in price. Rule #1: Buy stocks that are going up!  DUH. I have chosen the wrong stocks more times than I can count.  Rule #2 – You will violate Rule #1, so have a strategy to exit a losing trade!  I typically sell a losing trade when I lose eight percent.  

I cannot show you all the data required to review any stock in a 1,000-word blog. Besides studying a stock’s fundamentals and finances, I read four to six hours each day, studying the market.  I read numerous articles on the EV industry and provided a few links to reports in the appendix.

Nio is scheduled to launch the new 620 miles range battery in 2022.  The company’s strategy is to manufacture cars where the batteries are interchangeable between models—allowing a customer who purchases a lower mile range battery (275 miles) to upgrade to a more extended mile battery (400 miles) at almost any time.  Nio is also targeting expanding its Power Swap Station installations up to 500 sites in China. These are battery swapping stations where you can drive in, tap a few buttons, and the machine will change the battery in your car for a new power unit.

Below is my list of some pros and cons of investing in NIO.  I do NOT recommend stocks in this blog.  I am using NIO as an example of the hours of reading and analyzes necessary before investing money.  You must do the work to analyze a stock, ETF, Bitcoin, etc., before spending your hard-earned money. Or you depend on LUCK! 

LUCK IS NEVER A WINNING STRATEGY! 

PROS AND CONS INVESTING IN NIO STOCK

CAR FEATURESPRO/UPCONS/DOWNNEUTRAL/SIDEWAYS
Car Interior Appearance  Sleek interiors- similar to Tesla, 
Self-Driving Technology Uses Lidar Versus Cameras (Tesla)Slight Edge- Lidar is considered a more reliable technology for self-driving cars.  Cost and size significantly reduced. Tesla using eight cameras
Utilizing Nvidia Chips  Tesla is manufacturing its chips.  Several chip manufacturers available
Projected Maximum Mile Range- 620Battery swapping capabilities allowing leasing of batteries and upgrading at will too longer-range batteries  Doubtful NIO can achieve 620 miles Likely mileage will be similar to Tesla
Size of MarketplaceChina has the largest global midclass  Tesla and many more manufactures are selling in China
Access to Capital  THE majority of EV Manufactures have access to Capital
Founder Remains in Place as CEO  NIO Founder remains CEO. Valid for the majority of EV manufacturers
Significant Increases in Production: 2018, 2019 and 2020 It has three existing SUVs and now launching sedans.  A limited number of actual vehicles on the road  
PROS AND CONS INVESTING IN NIO

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Thank you to my followers and readers for your likes and comments.  All comments, recommendations, and feedback are welcomed and utilized to improve this blog.

ABOUT ME

I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an NC. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.

I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life.  It is my time to serve and give back.

DISCLAIMER

I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, real estate, and happy to share my finance and investment lessons learned with you.

However, I am NOT a licensed financial advisor.  Please do not construe my suggestions on this blog as recommendations for your situation.  For individual financial advice, please seek your licensed CPA or fiduciary financial advisors.  

I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.

To follow my daily posts on Instagram, CLICK BELOW:

 http://instagram.com/wealth_building_powers

APPENDIX

https://flipboard.com/@styronpowers/nio-n8sa58gmz?from=share&utm_source=flipboard&utm_medium=curator_share

Nio Races Higher After Unveiling Luxury Electric Car, Long-Range Battery

https://www.investors.com/news/nio-stock-buy-zone-nio-day-electric-car-battery-autonomous-driving-technology/?src=A00413A&refcode=aflFlipboard

China EV Maker Nio to Unveil New Sedan as Valuation Eclipses GM.

https://www.bloomberg.com/news/articles/2021-01-08/china-ev-maker-nio-to-unveil-new-sedan-as-valuation-eclipses-gm

NIO unveils impressive autonomous electric car with a massive battery pack

Nio partners with Nvidia on next-gen electric vehicle tech (NASDAQ:NVDA)

https://seekingalpha.com/news/3650112-nio-partners-nvidia-on-next-gen-electric-vehicle-tech?utm_source=from.flipboard.com&utm_medium=referral

China’s EV war: Tesla faces a rival with a record 621-mile range as NIO’s ET7 electric car raises the ante in the world’s largest market

https://www.scmp.com/business/companies/article/3117106/chinas-ev-war-tesla-faces-rival-record-621-mile-range-nios-et7

Nio ET7 electric sedan has 620 miles of range and an incredibly powerful self-driving system

https://mashable.com/article/nio-et7/

Nio announces a 150kWh solid-state EV battery that’s backward compatible

https://www.pocket-lint.com/cars/news/155260-nio-announces-150kwh-solid-state-ev-battery-that-s-backward-compatible

Nio Stock Races Higher After Unveiling Luxury Electric Car, Long-Range Battery | Investor’s Business Daily

https://www.investors.com/news/nio-stock-buy-zone-nio-day-electric-car-battery-autonomous-driving-technology/

NIO teams up with Nvidia, Qualcomm in self-driving car development

https://www.zdnet.com/article/nio-teams-up-with-nvidia-qualcomm-in-self-driving-car-development/

Powers Investments Management, LLC

This blog will provide, information and simple strategies, that will assist you to achieve YOUR financial objectives and long term targets. For over 30 years, I solved multi-million dollar problems, for Fortune 10-250, companies. My formal education includes: Business, Finance and Chemical Engineering {Problem Solving} at: Harvard, Rutgers and North Carolina State. And an additional 30+ years, managing my family’s investment decisions. I currently manage/advise people with net-worths ranging from the tens of thousands to several million dollars.

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