Is Nio Stock a Buy Under $5 in 2025?

Valuation Analysis - Nio's stock price is currently below $5, down by roughly 85% over the past three years, but the valuation should be assessed using metrics like the price-to-sales ratio rather than the stock price alone [1][2] - Nio trades at a much cheaper price-to-sales ratio compared to its competitors, making it appear undervalued [3] - If Nio's price-to-sales ratio aligns more closely with its peers, it could lead to significant stock price appreciation [3] Growth Prospects for 2025 - Nio is expected to achieve substantial growth in 2025, driven by the production and deliveries of two new models, Firefly and Onvo [4] - The Onvo model entered production in September, and the Firefly launched in late December, with production ramping up to boost deliveries and revenues [5] - In December, Nio's deliveries surpassed 30,000 units, a monthly record, driven by the Onvo model, signaling strong growth potential for 2025 [6] - Nio aims to deliver approximately 440,000 units in 2025, nearly doubling its 2024 sales, supported by its newer models [6] Expansion and Operational Efficiency - Nio plans to expand into 25 overseas markets by the end of 2025, aiming to deliver growth while improving gross profit margins, controlling costs, and boosting operational efficiency [7] - The company is positioning itself to achieve top-line growth, which could narrow its valuation gap with competitors and provide significant upside for shareholders [8] - If Nio can deliver top-line growth and improve gross margins, 2025 could be a strong year for the company and its investors [9]