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Nio Inc. continues to experience strong demand for its electric vehicles as we move towards the fourth fiscal quarter of 2021. NIO stock, which is listed on the NYSE under the ticker NIO, rallied towards the end of last week after the EV company announced plans for battery swap stations.

With a current market cap of $74.88 billion, you may be wondering if NIO is a good stock to buy. In this guide, we will show you how to buy NIO stock with 0% commission, as well as explore all the recent market movements that impact this NYSE-listed stock.

How to Buy NIO Stock – Quick Guide

  • Create a live trading account with eToro – At eToro you can access CFDs, forex, cryptos, ETFs and stocks with 0% commission. eToro is regulated by top-tier financial authorities including the FCA, CySEC, and ASIC. eToro is also a copy trading platform that allows you to copy the trades of other advanced investors. To get the ball rolling, simply go to the eToro.com website, click on Join Now and set up a live brokerage account using your personal details.
  • Upload Documents for Verification – eToro complies with strict KYC measures which means all new traders must verify their identity and address by uploading copies of POI and POA.
  • Deposit funds – Funding your eToro trading account is quick and easy. At eToro there are several payment methods available such as credit/debit cards, PayPal, Neteller, Skrill, bank transfers, and more. Simply log in with your account details, click on Deposit Funds, specify the amount and the currency and then select your preferred deposit method.
  • Buy NIO stock – You can buy Nio stock from the eToro trading app with the tap of a button. Simply tap on the search icon at the top of the screen and type in NIO. Next, tap on the Trade button, enter the amount you wish to invest and click open trade to buy NIO stock from your Apple or Android device.

67% of retail investor accounts lose money when trading CFDs with this provider.

Buy NIO Stock with eToro – Step by Step

Step 1: Opening a Live Trading Account

Opening an account on eToro is a fully digital and streamlined process that you can do on your desktop or via the eToro mobile trading app. To open a new trading account simply head over to the eToro.com website and tap on the Join Now or Trade Now button.

eToro open an account

This will take you to an electronic form where you will need to populate the missing fields with your details such as your full name, username and password, mobile phone number and email address. eToro also conveniently allows you to set up an account via Facebook or Gmail.

Before you submit your personal data for formal review, you are required to read and accept eToro’s Terms & Conditions and its privacy policy. To finish the sign-up process simply click the ‘Create Account’ button at the bottom of the page.

Step 2: Verification

As part of the KYC process all new traders need to verify both their identity and address by uploading a copy of their passport or driving license, and a recent utility bill or bank statement.

Top-tier financial authorities put KYC regulations in place to combat money laundering and to keep the online trading environment as secure as possible. The verification process can take a couple of business days, and you will be alerted once your brokerage account has been verified.

Step 3: Deposit Funds

Depositing funds into your account is quick and simple as eToro supports several different payment methods including debit cards, credit cards, PayPal, Neteller, iDeal, bank transfer, and more.

To deposit funds into your eToro trading account simply follow these 4 easy steps as shown in the screenshot below.

eToro fund account

The processing times vary depending on the payment option that you choose and the minimum first deposit is $200.

Step 4: Buy NIO Stock

As soon as your eToro trading account has been funded, you can then buy NIO stock. Firstly, type ‘Nio’ into the search box at the top of the screen. This will display a list of relevant results, and by clicking on ‘Nio’ you will be taken to the trading terminal where you will need to click on the ‘Trade’ button in the right-hand corner.

Buy NIO stock on eToro

You will then have access to the order window. If you want to take the current market price on Nio, simply specify the amount you want to invest. Then to execute your Nio stock purchase, tap on the ‘Open Trade’ button.

Best Online Brokers to Buy NIO Stocks Reviewed

If you’re interested in buying NIO stock, then you will need to pick an online broker that suits your every trading need and goal. But with so many options available, how do you make the right decision?

In this section, we’ll cover two of the best online trading platforms out there that allow you to buy NIO stock with $0 commission, as well as a host of other innovative and convenient trading features.

1. eToro – Leading Social Trading Platform With 0% Commission Stock Trading

Buying stocks with 0% commission may seem too good to be true, but with eToro you can trade hundreds of stocks on 17 international markets without having to pay a penny in commissions. Thisetoro logo means that you can gain exposure to the NYSE, NASDAQ 100, and LSE with the click of a button.

eToro also supports CFD derivatives trading, which means that you can buy NIO stock in the traditional sense, but you can also invest in stock CFDs. Simply put, CFD trading allows you to speculate on the price movements of the stock without taking ownership of the underlying asset. Additionally, CFD traders can take advantage of leverage which gives you exposure to greater purchasing power.

eToro is a widely popular social trading platform that enables traders to interact and share trading strategies with one another, much like a social network platform. Furthermore, eToro facilitates copy trading which means you can copy the trades of other experienced eToro investors with the click of a button.

67% of retail investor accounts lose money when trading CFDs with this provider.

eToro’s CopyTrader and CopyPortfolio offer a passive approach to online investing. By browsing through hundreds of public profiles you can choose which seasoned traders you want to copy. The minimum investment with CopyTrader is $200, and you can copy up to 100 traders at the same time. CopyPortfolio, on the other hand, has a minimum investment of $5,000 and allows you to invest either in a theme such as cryptocurrencies or a CFD portfolio of multiple eToro traders.

With no deposit fees you can choose from a wide range of supported payment methods such as debit cards, credit cards, bank transfer, and PayPal to name a few. There is also a minimum initial deposit of $200, which becomes a $50 minimum thereafter.

In terms of regulations, eToro is fully authorized by multiple top-tier financial authorities including the UK’s Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), and Cyprus Securities and Exchange Commission (CySEC).

Moreover, all clients’ funds are held in segregated bank accounts and are covered by the applicable investor protection schemes. For UK-based clients, the Financial Services Compensation Scheme (FSCS) covers up to £85,000 if the broker goes into liquidation.

eToro Pros & Cons

What we like

  • Commission-free stock trading
  • Regulated by the FCA, CySEC, and ASIC
  • Free paper trading account
  • Supports fractional share trading
  • Provides access to CFDs, forex, ETFs, and more

What we don’t like

  • $500 minimum when depositing via Bank Transfer

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Capital.com – Best Online Stock CFD Broker Offering 0% Commission trading and Low Spreads

Established in 2016, Capital.com is a popular global CFD and forex trading platform that gives users access to over 2,700 stock CFDs with 0% commission and market-leading spreads. Capital.com

Capital.com has a huge selection of more than 3,000 stock CFDs, as well as forex and crypto CFD trading. Trading CFDs means that you agree to exchange the price difference of an asset from the moment your position is opened to the moment it’s closed. Key benefits of buying and selling CFDs include leverage, hedging and short selling. But does CFD trading appeal to your trading goals?

CFDs allow your investments to go that extra step further with leverage. To open a CFD position you will only be required to deposit a portion of the trade’s total value. In financial terms, this initial deposit is known as the required margin. While leverage works to lower the cost when opening a position, it can also maximize potential losses as CFD profits and losses are determined by the total size of your position.

67.7% of retail investor accounts lose money when trading CFDs with this provider.

For example, if you wanted to trade CFD stock which has a margin factor of 25%, a trade worth $1,000 would necessitate a deposit of $250.

When you trade CFDs with Capital.com you can either go long or go short depending on whether you think the market price will rise or fall in the short-term and long-term.

Capital.com has low non-trading fees including no account, inactivity, withdrawal, and deposit fees. When it comes to depositing funds into your account you can choose from a variety of payment methods including bank transfer, credit and debit cards, as well as e-wallets such as Apple Pay.

In terms of security and authorization, Capital.com is regulated by the FCA and CySEC which means you are covered by investor protection schemes and negative balance protection. Capital.com also keeps its clients’ funds in segregated bank accounts, which means that your funds will be held separately from the broker’s money and are therefore not exposed to potential financial issues that could manifest within the company.

Capital.com Pros & Cons

What we like

  • CySEC and FCA-regulated
  • 24/7 customer support
  • Stock CFD trading with 0% commissions
  • Low $20 minimum deposit
  • Low non-trading fees

What we don’t like

  • The minimum deposit for bank transfers is $250

67.7% of retail investor accounts lose money when trading CFDs with this provider.

NIO Stock Forecast

Why is NIO stock dropping?

Recently NIO stocks have been on a downward trend in unison with other Chinese stocks listed on US exchanges. However, NIO stock rallied on Friday 9th July 2021, as the electric car company hosted its Power Day 2021 event, rising over 3%. But this rally was short-lived as NIO stocks dropped 1.2% below Thursday’s high of $46.25.

eToro NIO Stock price forecast

With electric vehicles (EVs) as its claim to fame and fortune, NIO also offers an automated battery-exchange service for clients who do not have the patience for electric vehicle batteries to recharge. According to NIO, it takes around three minutes for the battery-swapping service to be completed. The Chinese company currently has 300 EV battery stations but has plans to increase that figure by 3,700 in the space of four years which represents an increase of 1233.3%.

These announcements and promising business plans are likely responsible for NIO stock’s early gains, but overall investor sentiment may still be sluggish as concerns continue to fester regarding the Government of China’s recent crackdown and criticism of US-listed Chinese companies.

So, why has the Chinese government hit US-listed companies with restrictions recently?

US-traded Chinese companies traded down last week (Wednesday 7th of July, 2021), as the government of the People’s Republic of China launched cybersecurity assessments on the app-based ride-hailing services company DiDi Global, as well as other companies. Chinese officials are reportedly concerned that the mandatory audits and regulations of companies listed on US exchanges pose a security risk to Chinese consumers’ personal data.

The short-term and long-term impacts are not yet clear, especially as NIO was listed on the New York Stock Exchange on September 12th, 2018. Many investment analysts are now worried that if NIO is no longer allowed to offer new stock to the public in the United States, a huge portion of funds will be cauterised.

Seasoned investors are all too familiar with the fact that car manufacturing needs substantial and sustainable funding. While NIO made gains on the previous year’s bullish sentiment to support their earnings and cash reserves through US investments, this may not be a feasible route in the future.

Another good indicator of how China’s restrictions have and could influence NIO’s business plans going forward is the second-quarter earnings report, which has yet to be announced.

NIO’s plans for global expansion continue

NIO has also announced that it will start selling its EV product line in Norway by Autumn 2021, which will be its first international market. In an effort to also boost its revenue from its battery service, NIO announced that it plans to set up battery swapping stations before 2023 in Norway.

NIO Stock Fundamental Data

Market Cap $73.67B
Price-to-Earnings Ratio (P/E ratio) N/A
Revenue $3.41B
Earnings Per Share (EPS) -0.9402
Dividend (Yield) (0%)
Previous Close 44.96
Day’s Range 44.92 – 46.88
52 Week Range 10.45 – 66-93
1-Year Return 220.61%

NIO Stock Price History

With headquarters in Shanghai, NIO is an electric vehicle manufacturer that was launched in 2014 by William Li. NIO currently has manufacturing and software facilities in China, a development centre in the United States, and a design centre in the UK and Germany.

eToro - NIO stock financial summary

NIO listed its stock on the New York Stock Exchange in the third fiscal quarter of 2018 under the ticker symbol NIO. The initial public offering (IPO) gathered $1 billion in funding which gave the EV firm a valuation of around $6 billion.

With NIO being a non-US-based company listed on the NYSE, it listed American depositary shares. This means that each ADS represents one Class A ordinary share – as opposed to a common stock. American Depositary Shares are equity shares in non-US companies that are managed by US depositary banks for trading on US markets such as the Nasdaq and NYSE.

In terms of stock splits, NIO has not split its stock since it started trading its stocks on the floor of the New York Stock exchange in 2018.

Let’s now explore the NIO stock historical data since the beginning of 2021:

Date Price Open High Low Vol. Change %
Jul 21 44.96 53.20 53.20 44.96 44.37M -15.49%
Jun 21 53.20 39.99 53.84 39.94 1.31B 37.75%
May 21 38.62 40.34 41.45 30.71 1.42B -3.06%
Apr 21 39.84 41.56 43.22 34.06 1.69B 2.21%
Mar 21 38.98 48.55 50.42 31.91 2.85B -14.85%
Feb 21 45.78 59.07 64.60 41.66 1.38B -19.68%
Jan 21 57.00 51.20 66.99 49.08 2.50B 16.95%

What is the NIO stock price forecast for the rest of Q3 and Q4?

According to CNN Business, 20 investment analysts providing a one-year price forecast for NIO stock have an average price target of 59.53, a high target of 92.17, and a low forecast of 19.84. The average target indicates a rise of 34.86% from the previous price of 44.14.

The current sentiment among investment analysts is that NIO stock is a buy now opportunity. This buy rating has been the general consensus amongst investors for the last four months.

According to TipRanks, a stock market research, news and analyst forecast platform, there is a widespread bullish sentiment amongst 9 Wall Street analysts offering price estimates for NIO stock since April.

NIO Dividend

For a company to pay dividends it needs to first generate cash flows that are greater than its capital expenses. Certain publicly traded stocks cannot pay dividends to their shareholders because they have negative free cash flows.

In the second fiscal quarter of 2021, The Chinese EV automaker spent a significant chunk of its revenue, 13% to be precise, on research and development expenses to improve its business model, services, and technology.

NIO electric vehicles

Investment analysts forecast NIO to transition from a loss per share of $0.94 in 2021 to a profit per share of around $0.05 next year which is expected to increase by 300% by 2023.

In summary, NIO is in the infancy stage of its expansion, with promising sales growth potential in the short-term and long-term future, spurred by increasing pressure to switch to zero-carbon emissions. All in all the EV company will continue to invest most of its revenue in research and development in order to expand outside China. As we have already mentioned, NIO has plans to offer its services and electric vehicles in Norway within the next couple of years. With this in mind, it is somewhat unlikely that NIO will initiate a dividend payout any time soon.

Should I Buy NIO Stock?

In this section we will cover why most investment analysts consider NIO stock to be a good buy opportunity.

  • Environmental Concerns Regarding Global Warming Continue to Drive Demand for EVs – Nio sold around 22,000 electric vehicles in Q2 of 2021 which represents more than 50% of its total in 2020.
  • Market Cap of $72.13B and counting – NIO was struggling at the start of 2020 when the Covid-19 pandemic struck. However, the stock-price rally allowed NIO to gather more funding. By the second fiscal quarter of last year NIO had amassed more than $7 billion on its balance sheet, which is a significant reserve to cushion any market volatility.
  • NIO’s commitment to invest in research and development – The EV company is set to introduce two sedan models to its current electric SUVs lineup in 2022. Furthermore, in May, NIO reached a deal with its manufacturing partner that will increase factory production by 150%.

NIO Stock Buy or Sell?

The current consensus amongst most investment analysts is that NIO stock is a buy opportunity. Moreover, the fact that NIO stock does not pay dividends to its shareholders yet can be justified by its robust commitment to research, development, and global expansion.

eToro NIO stock chart

The company has plans to expand outside China, and with an increasing network of loyal customers, widespread adoption of the electric vehicle craze, NIO seems ready to deliver positive growth in the foreseeable future.

Expert Verdict

In summary, NIO stock is considered one of the most promising investment opportunities in 2021. With a market capitalization of $72.13B, many investment analysts expect that growth to continue as the demand for electric vehicles continues to grow.

If you want to strike while the iron is hot with an investment in NIO stock today, then we recommend the top-rated social trading platform eToro. At eToro you can buy NIO stock with 0% commission while also interacting with other seasoned traders on the eToro mobile app.

So, to get started simply click the link below and sign-up for an eToro account today!

eToro – Buy NIO Stock With $0 Commission

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

What is NIO stock?

NIO is a Chinese electric vehicle manufacturer that offers charging and battery-swapping services. The company listed its IPO on the NYSE in 2018 and has since generated a market capitalization of $72.13B. The current consensus amongst investment analysts is that NIO stock is a great buy opportunity. At the time of writing the current market price for NIO stock (NYSE: NIO) is $43.55.

Why is NIO stock dropping?

NIO stock alongside several other US-listed Chinese stocks have experienced downward trends over the past couple of days after the Chinese government launched cybersecurity reviews on app-based ride-hailing titan DiDi Global. When the news broke NIO stock dropped by nearly 7%.

How to buy NIO stock

You can buy NIO stock on eToro with 0% commission. Simply create an account, deposit funds and buy NIO stock directly from your eToro trading account with the click of a button.

How much is NIO stock?

NIO stock has a current market price of $43.55, and with eToro you can buy the best stocks without having to pay a penny in commission.

How high will NIO stock go?

According to CNN Business, 20 investment analysts have forecast NIO stock to have a median target of 59.53, with a high estimate of 92.17 and a low estimate of 19.84.

About Dassos Troullides
About Dassos Troullides

Dassos Troullides is an experienced finance writer who specializes in CFD, stock, and crypto trading. In particular, Dassos is skilled at breaking down complex financial topics to help new and advanced investors make better trading decisions. Dassos also writes for BuyShares.com, InsideBitcoins.com, LearnBonds.com, ForexCrunch.com, and EconomyWatch.com

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