Nio shares: price, dividends and performance

James Rodriguez James Rodriguez  updated on 2022-06-15

Invest in the stock market with Qtrade

Save almost $500 in fees using the code: 50TRADESFREE

Sign-up

Relatively new and now listed on the U.S. stock market, the Chinese electric car company's Nio stock is performing well over the long-term despite no dividend.

How much can you make with Nio stock?

Get up-to-date and precise information on Nio stock with its current price, dividend yield, analysis and our opinion.

This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.

Want to buy shares in Nio: Our key take-aways

Stock exchange: NYSE

  • Stock index: NYSE Composite
  • Dividend 2021: $0
  • Dividend forecast 2022: $0
  • Performance over 1 year: -55.10%

Should I buy Nio stock?

Nio is a stock that is widely recommended by analysts as part of a long-term performance strategy.

This Chinese electric vehicle company is relatively new in its sector, its development prospects remain strong as evidenced by its share performance in only three years.

However, it will not be suitable for investors looking for a steady yield, as the company does not currently pay any dividend to its shareholders.

Learn all about stocks and get investing advice online from The Motley Fool.

Investment recommendations and the best stock picks from The Motley Fool Stock Advisor

Sign up today

How can I buy shares in Nio ?  

To buy Nio on the stock market:

  1. Find an online broker offering stock investments.
  2. Open your trading account by filling out a simple form.
  3. Deposit funds into your account.
  4. Search for the stock
  5. Place a buy order to add Nio to your stock portfolio.

To invest in Nio, you can go through a traditional investment firm, an online brokerage or speak with a financial advisor.

How much are Nio shares?

See price chart below to follow Nio stock price in real time.

Ready to invest in Nio? Shop for through Qtrade.

Invest in the stock market with Qtrade

Save almost $500 in fees using the code: 50TRADESFREE

Sign-up

Why Nio shares could go up:

There are many current reasons for Nio's share price to rise, the main ones being

  • Government funding: Companies related to the Chinese government such as Nio have a large amount of incoming capital, which allows them to develop more rapidly.
  • Strong investment in R&D: The group's investment in research and development, especially for the development and needs of the user network, is significant.
  • Industry leader: The Nio Group is currently the leader in its segment of competitively priced, high-end electric vehicles.
  • High market growth: China's passenger car market, especially the SUV segment, is currently experiencing strong growth and analysts expect this growth to continue.
  • Positive outlook: Nio also enjoys a good outlook, especially on next-generation vehicles with autonomous driving.
  • Entry into the U.S. market: Nio's recent entry into the U.S. stock market provides the company with additional financing and increased awareness.
  • Low capital requirements: Nio's lack of a production facility allows it to achieve attractive growth without requiring significant start-up capital.
  • Electric policy: Finally, China is currently conducting a broad campaign to promote electric vehicles, whose share of the domestic automobile market is increasing steadily.

Why Nio shares could go down:

If Nio benefits from many elements in favour of the rise of its stock price, other elements are rather in favour of a fall of the price of this share of which:

  • A little-known brand: the Nio brand is still unknown to the market and its notoriety would require more investment in marketing and advertising.
  • Heavy investments: although the production of grouoe does not require capital, the same cannot be said for innovation and the significant R&D funding currently weighs on the company's profitability.
  • No dividend: Nio's stock is less attractive to investors than some of its competitors' stocks, particularly because of the lack of a dividend.
  • A historically young company: Nio's newness to the market may pose some challenges in attracting new customers.
  • Increased regulatory oversight: A new draft law requiring Chinese companies to undergo regulatory oversight may create a risk of the company returning to China.
  • Declining government subsidies: After a boom in recent years, government subsidies are currently declining, leading to a decline in consumer demand for new electric vehicles.

Can I buy Nio stock online?

Yes! You can buy Nio shares online. For many buys this is the best way to do it. Here's why:

  • The commissions are lower
  • You can choose your own investments
  • You benefit from analysis and decision support tools
  • You can invest in stocks directly or through derivatives like ETFs.

Invest in the stock market with Qtrade

Save almost $500 in fees using the code: 50TRADESFREE

Sign-up

How can I sell my Nio shares? 

In Canada, short selling of stocks on the stock market is not permitted with traditional investment vehicles and accounts. But it is still possible to bet on the decline of Nio stock through:

  • A margin account, which is the only account that allows short selling
  • Derivatives such as CFDs or options that allow you to take bearish positions.

What investment vehicles in Canada can hold Nio stock? 

Nio shares can be placed in several different savings vehicles including" 

  • RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
  • TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
  • Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
  • Cash accounts: This account allows you to trade stocks on North American markets only. 

Of course, it is possible to buy Nio shares individually and add them to your stock portfolio in order to hold them for the long-term.

But it is also possible to make diversified investments while partially betting on this stock. To do so, you simply invest in an ETF or mutual fund that includes this stock.

Nio share price history over 10 years:

Time periodGrowthHighLow
1 week-3.81%22.9618.48
1 month-7.68%55.0418.48
3 months-47.46%55.0418.48
6 months-45.30%55.0418.48
1 year-55.10%55.1318.48
3 years114.23%66.991.19
Nio 10-year performance

Nio dividends and payment dates

In 2021, the Nio Group has not paid a dividend to its shareholders and therefore its yield is zero.

In fact, since its recent listing on the stock market, Nio has not yet redistributed any profits to its shareholders. This lack of dividend is largely due to the fact that the company wants to reinvest all of its profits in growth and innovation.

The Nio share is therefore not a yielding share but should be considered as a growth stock. It is also not unlikely that the company will decide to distribute dividends in the coming years.

What is the dividend yield for Nio over the last 10 years?

The yield on Nio shares is obtained by dividing the annual dividend by the annual average price.

A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.

Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year

The 10-year average return = Sum of annual returns ÷ 10

What analysts are saying about Nio stock:

A critical analysis of Nio stock:

Fundamental analysis of Nio stock offers more bullish than bearish signals. Here is a summary of its current status:

  • One of the best growth stocks: Based on Nio's revenue estimates, this stock is currently one of the best growth stocks on the market.
  • Excellent financial position: Nio's financial position is excellent and the company has strong investment capabilities.
  • Positive consensus: the consensus of the analysts working on the stock is largely positive, with mainly buy or overweight recommendations.
  • Significant upside potential: The gap between current prices and the average analysts' price target is quite large, suggesting significant future appreciation.
  • Upwardly revised views: Both revenue forecasts and analysts' views have been revised upward several times in recent months.
  • Low margins: While Nio's revenue is growing, the company's profitability is still low with low margins.
  • High valuation: Nio's current value is estimated at 0.17 times current year sales, which reflects its high valuation.
  • Inconsistent estimates: the estimates of the various analysts working on Nio are not all consistent, suggesting low visibility of the business or divergent opinions.
  • Reports often below expectations: Finally, and historically, the Nio Group has often reported results below market and analyst expectations.

A technical analysis of Nio stock:

Regarding the long-term technical analysis of Nio shares, the indicators call for caution with mostly bearish signals:

  • The RSI indicator is currently sending a strong sell signal with a level of 43.45
  • The stochastic indicators are also pessimistic with sell or oversold signals depending on the period
  • The MACD is the only positive oscillator that is sending a buy signal. It is currently at 3.38
  • The MA5, MA10 and MA20 simple and exponential moving averages are sending a sell signal while the MA50, MA100 and MA200 are sending a buy signal
  • Finally, the next technical supports are located at 17.94 and 11.38 while the next technical resistances are located at 32.43 and 40.36

Who is Nio?

Nio Group Inc is a Chinese company specializing in the automotive sector. Specifically, the company specializes in the design, manufacture and sale of smart and connected electric vehicles.

In particular, the company manufactures autonomous driving electric vehicles integrated with next-generation technoogies and artificial intelligence as well as batteries and value-added services.

  • The main electric vehicle model is the ES8, which is a 7-seat electric SUV equipped with an electronic propulsion system capable of accelerating from 0 to 100 km/h in 4.4 seconds with a range of 355 km and a maximum range of 500 km on a single charge.
  • In terms of vehicle charging solutions, Nio offers the Power Home, Power Swap, Power Mobile and Power Express services.
  • Finally, the group also offers various value-added services to its customers with third-party liability insurance and auto damage insurance through various insurers as well as repair and maintenance services for its vehicles.

Currently, Nio still generates all of its revenue in China.

Who are Nio’s competitors?

Nio is a car manufacturer specialized in electric vehicles. It faces important competition from the historical actors of this sector including:

  • Tesla: of course, the car manufacturer specialized in electric Tesla, based in the United States, is the current leader of this sector of activity. The group offers innovative electric vehicles for the general public as well as on-board technologies such as autopilot.
  • BMW: This German automotive group has existed since 1916 and was also one of the first to develop a range of electric vehicles. It owns and operates several brands including BMW, Mini and Rolls Royce.
  • BYD Auto: this Chinese battery manufacturer recently diversified into the automotive field following the purchase of the Tsinchuan Automobile Company in 2003. Currently, this manufacturer offers electric vehicles and is one of the leaders in its sector in China.
  • Toyota: The Toyota Motor Corporation group is also one of the leading manufacturers of electric vehicles in the world. This Japanese manufacturer is also one of the companies that sell the most vehicles each year, all segments combined.
  • Renault-Nissan-Mitsubishi: the alliance between the three major automakers is a cross-shareholding alliance owned equally by Renault and Nissan. The group's various brands develop and market electric vehicles.

Who are Nio’s partners?

As a young and innovative company, Nio Group does not hesitate to establish strategic partnerships with other companies on a regular basis. Some of its recent allies include:

  • Nvidia: The two companies recently announced that they are collaborating on a new generation of electric vehicles with advanced autonomous driving capabilities. A first vehicle equipped with NVidia's DRIVE Orin supercomputer was unveiled at the event.
  • TotalEnergies: TotalEnergies Ventures, an investment fund of the oil company, and Nio Capital recently signed a cooperation agreement in the mobility sector in China, including electric vehicles, autonomous driving and intelligent systems, connected vehicles and mobility services.
  • Sinopec: Another interesting partnership is being set up between Nio and Sinopec, this time for a second-generation battery exchange station at a Sinopec gas station in Beijing.
  • Shell: The Nio Group has also joined forces with Shell to jointly develop a battery exchange station concept. Several pilot sites will be opened in Europe from 2022 to prepare for Nio's arrival on the continent.
  • LeasePlan: Finally, Nio has recently selected the European car rental company LeasePlan as its preferred partner in Norway..