I think the sad part is that they could easily do it. It’s a choice and the market does not agree hence the valuation bleed. I’m sure that the company has a great future but at what cost to current shareholders.
@@UrAverageInvestor. Exactly. The opportunity cost of being a Nio investor the last 4 years has been massive. Everything else has been going up and nio has only made lower lows
My view is that if the market share would be 20-30B usd rather than 10 right now they could do much easier raise and dilute much less. That way even a 5B billion raise would be much less harmful to the stock price and they could take that money and expand the swap stations much faster than they would anyways.
I am willing to give NIO time to get the costs of battery swap station buildouts under control. I do think the decision to share infrastructure costs with investors and other OEM partners suggests William Li understands NIO cannot shoulder this alone. Furthermore, over the next 4 quarters we should see whether or not these new initiatives will have a positive impact on gross margin. Long and strong!
I hope you are right but way of seeing this is that Nio would be better off to try to cut the losses substantially and make the market believe their plans and see a reaction in the the stock price. Once the valuation is north of 30billion usd then raise a bit more capital and invest in swap infrastructure. The stations are not utilised nearly enough in order to hinder customers so they could realistically relax on expansion for 1 year and improve the net loss significantly enough and then again hit the gas pedal. Thanks for great comment as usual :)
I agree. They should limit losses!!
I think the sad part is that they could easily do it. It’s a choice and the market does not agree hence the valuation bleed. I’m sure that the company has a great future but at what cost to current shareholders.
@@UrAverageInvestor. Exactly. The opportunity cost of being a Nio investor the last 4 years has been massive. Everything else has been going up and nio has only made lower lows
Do not stop building out PSS… without PSS, there is no uniqueness to NIO. I am not here for quick money!!
My view is that if the market share would be 20-30B usd rather than 10 right now they could do much easier raise and dilute much less. That way even a 5B billion raise would be much less harmful to the stock price and they could take that money and expand the swap stations much faster than they would anyways.
I am willing to give NIO time to get the costs of battery swap station buildouts under control. I do think the decision to share infrastructure costs with investors and other OEM partners suggests William Li understands NIO cannot shoulder this alone. Furthermore, over the next 4 quarters we should see whether or not these new initiatives will have a positive impact on gross margin. Long and strong!
I hope you are right but way of seeing this is that Nio would be better off to try to cut the losses substantially and make the market believe their plans and see a reaction in the the stock price. Once the valuation is north of 30billion usd then raise a bit more capital and invest in swap infrastructure. The stations are not utilised nearly enough in order to hinder customers so they could realistically relax on expansion for 1 year and improve the net loss significantly enough and then again hit the gas pedal. Thanks for great comment as usual :)
360,000 would be a 50% uplift from today's average
Thanks for the remark, I think 400k is optimistic but doable. 300k I would say as bare minimum so maybe 360k is the most realistic estimate :)
The stock price should be the same or above than xpeng by now.