Nio's Stock Is About the Cheapest It's Ever Been. 1 Thing to Know Before You Buy.

Core Viewpoint - Nio stock is currently undervalued, trading at a price-to-sales ratio of 0.8, significantly lower than its five-year average of 2.5, despite growing revenue in the Chinese EV market [1]. Group 1: Stock Performance - Nio stock has lost 41% of its value in the past six months and is only 6% away from its 52-week low [1]. - The stock experienced a brief gain of 19% through March 19 before declining after disappointing fourth-quarter and full-year 2024 results [3]. Group 2: Financial Performance - Vehicle sales increased by 13% year-over-year in Q4, but net loss surged by 33% [3]. - Nio's net loss for 2024 reached $3 billion on revenue of $9 billion, reflecting an 8% increase in losses [3]. Group 3: Market Challenges - A price war in the Chinese EV market has forced Nio to reduce vehicle prices multiple times, impacting profitability [4]. - High input costs, marketing expenses, and other non-operating items have further strained Nio's bottom line [4]. Group 4: Strategic Initiatives - Nio's management is working to reduce general expenses and has launched its own autonomous driving chip and software to decrease reliance on third parties [5]. - The company has introduced a mass-market brand, Onvo, to expand its market presence in China, with a second model set to launch soon [5]. - Deliveries surged by 49% in the first two months of 2025, indicating strong demand [5].