Core Viewpoint - Nio, a leading Chinese electric vehicle manufacturer, has experienced significant stock price fluctuations, with its shares dropping from a peak of $62.84 in February 2021 to below $4 currently, raising questions about its investment potential amid challenges and opportunities [1][2]. Group 1: Reasons to Buy Nio's Stock - Nio's deliveries have shown signs of recovery, with a 39% increase in 2024 to 221,970 vehicles and a 44.5% year-over-year increase in the first four months of 2025 [5][6]. - The company's vehicle margins improved from 9.5% in 2023 to 12.1% in 2024, driven by reduced material costs and a focus on higher-margin vehicles [8][9]. - Analysts project a compound annual growth rate of 28% in revenue from 2024 to 2027, alongside a significant reduction in net losses, making the stock attractive at less than 1 times next year's sales [10]. Group 2: Reasons to Sell Nio's Stock - Nio faces intense competition from larger players like BYD and Tesla, which delivered 4.27 million and 657,102 vehicles respectively in 2024, limiting Nio's market share growth [12]. - The company continues to incur substantial losses and is expected to remain unprofitable in the near future, complicating its business sustainability [13]. - Nio's debt-to-equity ratio has surged from 2.4 in 2021 to 15.8 in 2024, raising concerns about its financial stability and ability to fund expansion plans [14]. Group 3: Overall Assessment - Despite facing significant challenges, Nio's accelerating deliveries, improving margins, and low valuation suggest potential for future growth, making the bull case more compelling than the bear case [15][16].