Electric vehicle maker Nio (NYSE:NIO) successfully established itself as a premium brand within the China market. It differentiated itself from rival EV companies by creating a battery-swap business to serve as an alternative to charging.
Yet vehicle margins are narrowing and NIO stock remains a loss-generating company. It is looking to sell its EVs in other markets and plans on introducing a mass-market car this year. Yet lower-priced cars could damage Nio’s reputation as a premium EV company, undermining the value of its existing lineup.
With NIO stock already down 44% in 2024 and off a staggering 92% from its 2021 high, is this a stock investors should plug into or just kick it to the curb?
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