A self-proclaimed Chinese rival to Tesla had a not-so-great initial public offering (IPO).
On Wednesday, Chinese electric vehicle startup NIO Inc. priced its IPO in New York at $6.26 per share, just a cent above the bottom of the range it had expected to get. The 160 million American depositary shares sold raised $1 billion - thereby valuing the company above $6 billion and far below the $20 billion mark it had hoped to achieve in the early stages.
The electric carmaker’s ES8 electric SUV sells for about $65,000, which is about half the price of the most basic version of Tesla's Model X in China. In the first half of this year, NIO recorded $7 million in sales while incurring a loss of $503 million. Tesla, on the other hand, already has a rate of about $2 billion in annual sales in China.
Unlike Tesla, NIO does not manufacture its own vehicles; instead it outsources manufacturing to Chinese car company, Anhui Jianghui Automobile Group (JAC). NIO develops the in-car technology such as the artificial intelligence system and a charging system that it claims to let drivers change their car batteries in just three minutes.
In addition to Tesla, NIO also faces competition from Chinese manufacturers including Warren Buffett-backed BYD and Byton. Also, Volkswagen and Ford are among global established automakers that are upping the ante on electric car manufacturing specifically for the Chinese market.
The RSI Indicator for TSLA moved out of oversold territory on March 18, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 28 similar instances when the indicator left oversold territory. In of the 28 cases the stock moved higher. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on March 26, 2024. You may want to consider a long position or call options on TSLA as a result. In of 74 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TSLA just turned positive on March 21, 2024. Looking at past instances where TSLA's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in of 347 cases, the price rose further within the following month. The odds of a continued upward trend are .
TSLA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 339 cases where TSLA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSLA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. TSLA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.937) is normal, around the industry mean (6.099). P/E Ratio (40.881) is within average values for comparable stocks, (18.248). Projected Growth (PEG Ratio) (2.075) is also within normal values, averaging (5.435). TSLA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.042). P/S Ratio (6.329) is also within normal values, averaging (57.981).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of electric sports cars
Industry MotorVehicles