Skip to main content

NIO stock forecast 2025: Core technologies


In terms of new forces in car manufacturing, industry participants have entered the fast lane in areas such as new product releases and intelligent driving. With the "general trend" of the popularization of electric vehicles, you will catch up. For NIO, which is the first to deploy the electric vehicle industry, whether ET7 can take the industry pioneer into the "overtaking lane" and continue to be at the forefront of the industry. Examining NIO's strategic measures is an effective way to try to find answers. Way, especially in the context of the “general trend” of electric vehicles.

 NIO's Core technologies:

 1. At present and for a period of time, the price, performance iteration, and supply of batteries and core raw materials will be the core factors that determine the popularization of pure electric vehicles, and determine a series of trends in the market and participants.

 Lithium is an indispensable and important element of power batteries. The commercialization of solid-state batteries will double the demand for lithium: Lithium batteries are the most mature technology route for electric vehicles at this stage. Nearly 80% of the world’s lithium resource production is mainly concentrated in the Four Lakes and Americas.  

 The traditional four lakes in South America and the six mines in Australia have been reshaped. Traditional lithium giants such as Albemarle, Livent, SQM, and other traditional lithium industry giants have clear guidelines for future capacity expansion; Australian mines Terryson and Marion are not for sale; Altura, Wodgina, and Bald hill mines are still in In the shutdown state, the release of new production capacity and the restart of shutdown production capacity will take time. 

 In the next five years, the growth rate of the overall supply side will be lower than the growth rate of the demand side, and the price changes of upstream raw materials and even the evolution of geopolitics will bring about The changes in the industry will be directly transmitted to the manufacturing costs of vehicle companies and will have an impact on a series of commercial actions including selling prices.

 2. Autonomous driving is listed as a core strategy by many new car manufacturers, but the underlying technologies of autonomous driving, such as chips and its supply, are still in the hands of Europe, America, Japan, and South Korea. New car manufacturers in China may not be able to maintain the forefront of the industry in the field of autonomous driving.

 NIO is not a representative company for full-stack development. Its ADAS needs the support of suppliers. From an industrial point of view, the core underlying technology and supply chain of autonomous driving is not in China’s hands, such as chip research and development and industrial chain. , And the chip plays a vital role in smart electric vehicles.

 3. Traditional fuel vehicle OEMs are increasingly making efforts to adjust the layout and strategy of electric vehicle product lines. Their profitability and brand appeal will strongly impact new domestic vehicle manufacturers, such as Volkswagen, Audi, and the United States. General Motors, the future evolution of the market share of electric vehicles is still unclear;

 4. The profit problem of NIO will be a long-term strategic problem. Even if its strategic plan is forward-looking in the industry, if it continues to be unprofitable and faces blood transfusions, it will be passive in the increasing competition;

 Failure to generate positive cash flow and make a profit will result in a passive situation in the financing, product development, technology research and development, and talent reserves. The passive situation will evolve into a passive situation in the industry competition. A passive situation in the industry means life and death.

 5. NIO’s mid-to-high-end product line planning and the establishment of luxury brand recognition rely on two points: First, it accurately enters the Chinese high-end self-owned brand pure electric vehicle market, and releases large-scale luxury SUV models with growth potential to meet consumer options. The second is to rely on NIO House / NIO Space, user online services, and community operations, and the third is to replace battery + solid-state batteries to solve mileage anxiety + smart driving + smart cockpit landing product differentiation, but given the continuing negative trend of NIO House / NIO Space With the outflow of cash flow, NIO will eventually need to face the inevitable option of balancing the cash flow and the strategic planning;

NIO's crucial moment

 On May 13, the first verified prototype of the NIO ET7 was officially off the assembly line at NIO's Hefei Advanced Manufacturing Base and entered the stage of production and commissioning. Prototype verification is an important part of the production preparation process before mass production. It is responsible for debugging, matching, and optimizing the vehicle's performance and the user's driving experience.

 As NIO’s first sedan and its first self-driving model, the starting price before the ET7 subsidy is RMB 448,000, and the starting price of the BaaS program is RMB 378,000 before the subsidy. In addition, the first release version is priced at 526,000 yuan before subsidies, and the BaaS program is priced at 398,000 yuan before subsidies. The vehicle is scheduled to be delivered in the first quarter of 2022. All ET7 series is equipped with 19 safety and driving assistance functions of NAD as standard. The complete functions of NAD will adopt the service subscription model of "monthly activation and monthly payment", and the service fee is 680 yuan per month.

 At the Shanghai Auto Show, Xiaopeng Motors’ third product, the world’s first mass-produced smart car equipped with lidar, Xiaopeng P5, was officially unveiled. Within 53 hours after the official booking was opened, the cumulative order exceeded 10,000, becoming Xiaopeng Motors has the most pre-booked models. This is an A+ class car, the world's first mass-produced smart electric car equipped with lidar. At the same time, P7 will be delivered in Norway in the second half of this year.

 As the two powerful forces of China's new car-making forces, from the release of new models to the phased implementation of autonomous driving technology, a sense of vision that you are chasing me in the fast lane has jumped out.

  However, who can drive into the overtaking lane and continue to lead the industry?

 NIO is the earliest start-up company in China to deploy pure electric vehicles.

 Similar to other new car-making forces, NIO has tied up with Tencent, one of the Chinese Internet giants, to obtain its strategic investment and support.

 The left hand marries Tencent's strategic investment to obtain Tencent's scenario-based technology empowerment and strategic resource matching, and the right-hand links Hefei's state-owned capital industrial strategic investors to enhance industrial capital and regional policy support and other aspects of the moat strength.

 Throughout the history of NIO’s capital operation from its establishment to the present, its core operating characteristics are: first, it fully reaches China’s top domestic investment institutions, which will have a potential impact on the financing operations of other competitors; second, it will be marketed earlier. Provide import and export for the re-operation of capital market financing.

 NIO Automotive executive team

 The senior management team of NIO is more balanced, able to take into account all dimensions of automobile manufacturing, covering everything from the supply chain, vehicle production, sales, software research and development, and vehicle design.

NIO Product line strategy

 Positioning, model release, and planning:

 In the mid-to-high-end new energy vehicle market, the price of mass-produced models on the market is 35.8-624,000 yuan. From the high-end market to the mid-to-high-end market, from SUV to car, the product matrix is ​​gradually improved. In the future, new models will be launched at the annual schedule, and models will also be extended to MPV and Coupe.

 Its SUV model ES8 fills the gap in the selection of high-end pure electric vehicles of China's own domestic brands. The product line meets consumer needs (license restrictions + intelligent cockpit + car cost comparison + consumer needs for large luxury SUVs).

 design:

 The fusion of extreme performance and a pleasant life emphasizes user experience. The products have a sense of technology and intelligence and cater to the aesthetics and preferences of young people. The use of panoramic sky screen, streamlined dynamic design, large central control screen, high-value and high-quality interiors, and other elements enhance the sense of experience.

 Production mode: coexistence of foundry and self-built.

 Both models have their own advantages. The foundry model can speed up mass production and reduce equipment purchases, and the self-built model can better control product quality. NIO uses the JAC foundry method.

 NIO's three-electric system is developed and produced in Nanjing Advanced Manufacturing Technology Center. The production scope includes battery PACK and EDS electric drive system.

Comments

Popular posts from this blog

Teladoc stock forecast 2025: Is it time to buy TDOC?

 TDOC's performance exceeded expectations. Why did the performance decline after the announcement?  Teladoc (TDOC) reported quarterly earnings of US$0.13 per share, which exceeded the consensus estimate of a loss of US$0.57 per share. In the same period last year, it had a loss of US$0.4 per share.  The earnings of this financial report far exceeded expectations.  In the last quarter, people expected this telemedicine service company to lose 0.25 US dollars per share, but the actual loss per share was 0.27 US dollars, which was not as good as expected at the time.  In the past four quarters, TDOC exceeded expectations twice.  The management stated that the company's current momentum in various channels and regions should not be underestimated in the conference call. It has raised its annual revenue guidance to 20 million U.S. dollars, which is expected to be between 1.97 billion and 2.02 billion U.S. dollars.    In the first quarter, the comp...

Catherine Wood's Disruptive Innovation ETF: Is ARKK worth buying?

  ARKK ETF by Catherine Wood  Catherine Wood's Disruptive Innovation ETF  Warren Buffett is a stock god that everyone respected in the past, but in the past year, the female stock god Catherine Wood has become famous for the rising trend of technology stocks, and his head completely overshadows Buffett.   Therefore, this time I want to talk to you in detail about the prestigious history of this female stock god.  Catherine Wood founded ARK Investment in 2014 and listed the funds under her management under Exchange Traded Funds to facilitate investors to buy and sell, but the management fee is as low as some passive funds that track an index, about 0.75% per year.  Ark Investment launched 4 ETFs in September and October 2014. The themes are Next Generation Internet, Automation Technology and Robots, Innovative Technology, and Genetics.  Among them, Innovative Technology is currently the flagship ETF of Ark Investment and the most most popular ETF w...

AMZN stock forecast 2025: Amazon's main advantages

  On July 6, after the US stock market opened, Amazon broke through $3,600, a record high.  Amazon has been oscillating between 3000-3500 US dollars in the past year, and the stock price finally broke through.  Amazon is a stock that has a high valuation from PE but is seriously undervalued by the market from the perspective of its development prospects. It is one of my favorite technology stocks.  Amazon's main advantages are:  1. Amazon's current GMV is only half that of Alibaba.  Looking at the current penetration rate of e-commerce in China and the future penetration rate of e-commerce in the United States, we will find that Amazon e-commerce has huge growth potential in the United States.  Amazon e-commerce is far from saturated in the United States.  2. Cloud computing has unlimited potential.  As the industry leader, Amazon's cloud computing can maintain a growth rate of 20%-30% for many years in the future.  3. The international ...

FNKO VS PLBY: Which NFT stock is more attractive for investment?

The market for NFT stocks is recently booming, and investors have begun to show strong interest in NFT stocks.  NFT is a digital asset created using blockchain encryption technology, such as works of art, music or video, etc. Each NFT has a unique digital signature to determine its unique attributes, making it difficult for NFTs to exchange with each other.  NFT provides a unique way for content creators to earn income by paying copyright fees or selling their artworks directly to consumers.  According to data provided by Forbes Advisor, since November 2017, nearly $174 million has been used for NFT transactions. On May 12, Eastern Time, eBay (EBAY.US) added NFT to its online shopping mall product list.  Funko (FNKO.US) and PLBY Group (PLBY.US) recently had the most popular NFT concept stocks, which stock is more attractive for investment?  Let's look at what Wall Street analysts think of these two stocks.  Funko is a pop culture consumer goods company who...

VRTX stock forecast 2025: Vertex is undervalued

Let's look at some biotech companies with stable cash flow and currently undervalued value stocks as targets for diversified portfolios.  The company I shared today, called Vertex Pharmaceuticals (VRTX), is dedicated to the development of rare diseases, especially Cystic Fibrosis (CF). I have always had high respect for the rare disease group of pharmaceutical companies in the disease category. In addition, in the future, gene and cell therapies are subverting the role of rare diseases in the pharmaceutical industry, making rare diseases no longer uncommon. It's tasteless, but a field full of the future. Vertex Pharmaceuticals Inc. was established in 1989 by Joshua Boger and Kevin Kinsella. is headquartered in Boston. At that time, several very good research and development companies were established in the United States, including the aforementioned Regeneron, Gilead, and today's Vertex.  Vertex In the past, he devoted himself to the development of small molecule drugs, wh...

Shopify stock forecast 2025:Is it worth buying?

  In the last year, the stocks rose relatively well. Another sector is e-commerce. Whether it is Amazon, Alibaba, JD.com, Pinduoduo, SEA or vertical e-commerce platforms Etsy and Chewy, all of them have experienced huge gains, while another category has benefited from the e-commerce sector.  The company is a website building tool company such as Shopify BigCommerce Holdings. Today I will talk about shopify, the leader of website building tools.  First, let's briefly talk about shopify's business model. To put it simply, shopify is a fool-like website building platform. In the past, when a company wanted to build a corporate website, it generally needed to find a dedicated person to design and maintain the website.  If you want to add shopping functions to the website, the cost of building the website will also increase. This is true for many small businesses and individual businesses.   A very difficult thing. Shopify uses the SAAS model to provide websit...

Palantir stock forecast 2025: What kind of company is PLTR?

 PLTR introduced today may be the most controversial company in the current market, not one of them.  As a stock, he is the faith stock of many retail investors. Those who believe in it generally believe that its stock price can double at least ten times in the future.  Catherine Wood, the president of the ARK Fund, nicknamed "the light of retail investors," continues to buy the stock, which is also highly sought after on the WSB forum; on the contrary, most analysts on Wall Street are not optimistic about its development.  The average target price at the end of 2021 is still 10% lower than the current stock price.  As a company, its revenue is growing steadily and rapidly, with an annual growth rate of about 30% per year. However, the company has never achieved profitability in the past 20 years since its establishment.  As a high-tech enterprise, the company is full of various genius ideas and the top talents in the industry, but they are mostly engaged i...

Bitcoin will eventually lose its king status! Replaced by Ethereum

 Considering many factors such as real use, user base, technological iteration speed, etc., Ethereum is likely to replace Bitcoin as the mainstream cryptocurrency.  In terms of market trends, the key difference between the current cryptocurrency market and the 2017-2018 bull market is the participation of institutional investors.  However, with the recent slowdown in the participation of institutional investors, the inflow of cryptocurrency ETFs has decreased, alternative currencies have emerged one after another, and the market has once again been dominated by retail investors.  This shift from institutions to retail investors is increasing the possibility of a market crash.  The current high volatility in the market will continue until cryptocurrencies have potential real economic uses independent of prices.  Etherfang has huge potential  The Ethereum system supports smart contracts and provides developers with a way to create new applications. ...

Three stages of bull and bear markets!

The bull and bear markets of the stock market are traditional indicators of the business cycle. As an investor, distinguishing bull and bear markets in the stock market and grasping the long-term development direction of the market can avoid the impact of short-term market fluctuations and the impact of complex market information.  For example, the market fluctuations brought by news information, the sudden and sharp drop in market prices, and the impact of investor sentiment have led to making wrong investment trading decisions. The stock market is in a bull market, most asset prices will continue to rise, and the stock market is in a bear market, most asset prices will continue to fall. Both bull and bear markets are divided into three stages, so how to tell whether the stock market is in a bull or bear market, and at what stage. S&P500 Index What is a bull market? In the first stage of the bull market, after the market economy was in recession, the stock price fe...

AMD stock forecast 2025: Q2 is expected to perform strongly

Before the US stock market on July 19, US technology stocks continued their decline last Friday, and AMD's stock price also continued to fall.  AMD will announce the results of the second quarter of 2021 on July 27. The market expects this performance to be strong, so this round of decline may be a great opportunity to buy the stock.  financial indicator  Due to the strong market demand for CPU and graphics cards in 2021, AMD’s revenue is expected to exceed the maximum value of the financial guidance. AMD’s C&G business is expected to grow the most because higher-priced AMD Ryzen and high-end AMD Radeon sales continue to increase.  In terms of gross profit margin, the market expects AMD's gross profit margin in Q2 2021 will increase by 47% year-on-year.  If the average selling prices of CPUs and GPUs continue to rise in Q2 of 2021, and the ASPs of CPUs and GPUs will increase in Q1 of 2021, the gross profit margin may also increase by 48%.  CPU market sh...