How To Invest in NIO Stock
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 looking into NIO as a possible investment option. In this guide, we will show you how to invest in NIO stock , as well as review some popular brokerages that allow users to invest in this stock.
How to Invest in NIO Stock – Quick Guide
If you only wish for us to provide quick instructions on how to invest in NIO stock, then we show you how to do so in the steps below.
- Create Your Account — Start by creating a trading account on your chosen platform and complete the sign-up process.
- Verify Your ID — Next, verify your ID by providing your driver’s license, passport, or ID.
- Deposit Funds — Deposit funds that you will use as your initial investment through one of the numerous supported payment methods.
- Invest in NIO Stock — Finally, search for NIO stock on your platform’s search bar and enter the amount you wish to invest in the stock and confirm your transaction.
How To Invest in NIO Stock – Step-By-Step Breakdown
Step 1: Open Your Trading Account
Head over to the homepage of your chosen broker and begin the account set-up process. You will be required to fill in your personal details – including your full name, email address and mobile number. Create a username and password for the platform to continue.
Step 2: Verify Your Identity
Most popular brokers are regulated – which is why users may be required to verify their accounts. To do this, simply upload proof of ID (a copy of your driver’s license or passport) and proof of address (a copy of a bank statement or utility bill). Once these documents have been uploaded, your broker should verify them in a couple of minutes.
Step 3: Deposit funds
The next step is to deposit funds into your trading account. Most brokers may support 1 or more of the following payment methods:
- Credit card
- Debit card
- Bank transfer
Choose your preferred payment option and deposit the funds into your account.
Step 4: Invest in NIO Stock
Once your account has been funded, proceed to search for NIO stock by searching on your platform’s search bar. Fill in the amount you want to credit into the trade, and confirm your transaction.
Popular Online Brokers Reviewed
If you’re interested in investing in NIO stock, then you will need to pick an online broker that suits your every trading need and goal.
In this section, we’ll cover two popular trading platforms out there that allow you to invest in NIO stock.
eToro is a popular trading platform that allows users to purchase stocks without commission and trade on 17 international markets. This 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 invest in 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 use 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.
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 $10, which allows users to begin trading on a tight budget.
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.
|Stock Broker||Minimum Deposit||Fractional Shares?||Pricing System||Cost of Buying Stocks||Fees & Charges|
|eToro||$10||Yes – $10 minimum||0% commission on ALL real stocks, spreads for CFDs||Market spread is not included when purchasing real stocks||No Deposit fees, $5 withdrawal fee, $10 inactivity fee, no account management fees.|
Sponsored ad. 68% of retail investors lose money trading CFDs at this site
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.
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
|Price-to-Earnings Ratio (P/E ratio)||N/A|
|Earnings Per Share (EPS)||-0.9402|
|Day’s Range||44.92 – 46.88|
|52 Week Range||10.45 – 66-93|
NIO Stock Price History[fw-price-listing locale=”en” ticker=”NIO.NYSE” affiliate_label=”Buy Nio stocks” affiliate_link=”https://tradingplatforms.com/visit/etoro” disclosure=”Your capital is at risk.” currencies=”USD”]
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.
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:
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.
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. 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.
With a current market capitalisation of $72.13B, NIO is a popular stock in the market. However, uncertainty in the EV markets means that this stock is constantly surrounded by volatility. With the information given above, users should look to analyse and research the company and stock to make a decision on whether or not to invest in NIO.