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Category: Tesla (TSLA) and NIO (NIO)
Date: 24 August 2020 Stock price of Tesla (TSLA): $2049.88 Stock price of Nio Inc (NIO): $14.12 We compare two manufacturers of electric vehicles stock with one another in this battle of the EV stocks. Tesla (TSLA) vs Nio Inc (NIO). As we recently showed the stock of Tesla is a bubble waiting to burst. And the question is will NIO stock be pushed up to the dizzying heights that Tesla (TSLA) stock has been pushed to?
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While we believe the stock of Tesla is a bubble waiting to burst and will leave a lot of people burnt when that bubble pops, we are not opposed to taking a punt on NIO and checking if it takes off just like Tesla."
More About NIO Inc (NIO)
NIO Inc. is a pioneer in China’s premium smart electric vehicle market. Founded in November 2014, NIO’s mission is to shape a joyful lifestyle by offering premium smart electric vehicles and being the best user enterprise. NIO designs, jointly manufactures, and sells smart and connected premium electric vehicles, driving innovations in next generation technologies in connectivity, autonomous driving and artificial intelligence. Redefining the user experience, NIO provides users with comprehensive, convenient and innovative charging solutions and other user-centric services. NIO began deliveries of the ES8, a 7-seater flagship premium electric SUV in China in June 2018, and its variant, the 6-seater ES8, in March 2019. NIO officially launched the ES6, a 5-seater high-performance premium electric SUV, in December 2018 and began the first deliveries of the ES6 in June 2019. NIO officially launched the EC6, a 5-seater premium smart electric coupe SUV, in December 2019 and plans to commence deliveries in 2020.
Quick facts about NIO Inc (NIO)
Deliveries of vehicles were 10,331 in the second quarter of 2020, including 8,068 ES6s and 2,263 ES8s, compared with 3,553 vehicles delivered in the second quarter of 2019 and 3,838 vehicles delivered in the first quarter of 2020.
Read more about NIO here
Quick facts about NIO Inc (NIO)
- Vehicle Sales Revenue for 2Q 2020: $493.4 million
- Vehicle Margin for 2Q 2020: 9.7%
- Gross profit for 2Q 2020: $44.3 million
- Net loss for 2Q 2020: -$166.5 million
- Net loss per share for 2Q 2020: -$0.16
- Number of vehicles delivered for 2Q 2020: 10 331
Deliveries of vehicles were 10,331 in the second quarter of 2020, including 8,068 ES6s and 2,263 ES8s, compared with 3,553 vehicles delivered in the second quarter of 2019 and 3,838 vehicles delivered in the first quarter of 2020.
Read more about NIO here
More About Tesla (TSLA)
We design, develop, manufacture and sell high-performance fully electric vehicles (“EVs”) and energy generation and storage systems, and also install and maintain such energy systems and sell solar electricity. We are the world’s first vertically integated sustainable energy company, offering end-toend clean energy products, including generation, storage and consumption. We have established and continue to grow a global network of stores, galleries, vehicle service centers, Mobile Service technicians, body shops, Supercharger stations and Destination Chargers to accelerate the widespread adoption of our products, and we continue to develop self-driving capability in order to improve vehicle safety. Our sustainable energy products, engineering expertise, intense focus to accelerate the world’s transition to sustainable energy, and business model differentiate us from other companies.
We currently produce and sell three fully electric vehicles: the Model S sedan, the Model X sport utility vehicle (“SUV”) and the Model 3 sedan. All of our vehicles offer high performance and functionality as well as attractive styling. We commenced deliveries of Model S in June 2012 and have continued to improve Model S by introducing performance, all-wheel drive dual motor, and Autopilot options, as well as free over-the-air software updates. We commenced deliveries of Model X in September 2015. Model X offers seating for up to seven people, all-wheel drive, and our Autopilot functionality. We commenced deliveries of Model 3, a lower-priced sedan designed for the mass market, in July 2017, and we have significantly ramped its production. We are now embarking on the delivery of Model 3 in international markets and are focusing on lowering manufacturing costs while continuing to increase its production rate. We also intend to bring additional all-electric vehicles to market in the future, including Model Y, the Tesla Semi truck, a pickup truck and a new version of the Tesla Roadster.
Quick facts about Tesla:
2nd quarter 2020 production numbers compared to 2nd quarter of 2019
Model description June 2020 June 2019 Year on year percentage change
Model S/X 6 326 14 517 - 56%
Model 3/Y 75 946 72 531 5%
Total 82 272 87 048 -5%
For more about Tesla read here
We currently produce and sell three fully electric vehicles: the Model S sedan, the Model X sport utility vehicle (“SUV”) and the Model 3 sedan. All of our vehicles offer high performance and functionality as well as attractive styling. We commenced deliveries of Model S in June 2012 and have continued to improve Model S by introducing performance, all-wheel drive dual motor, and Autopilot options, as well as free over-the-air software updates. We commenced deliveries of Model X in September 2015. Model X offers seating for up to seven people, all-wheel drive, and our Autopilot functionality. We commenced deliveries of Model 3, a lower-priced sedan designed for the mass market, in July 2017, and we have significantly ramped its production. We are now embarking on the delivery of Model 3 in international markets and are focusing on lowering manufacturing costs while continuing to increase its production rate. We also intend to bring additional all-electric vehicles to market in the future, including Model Y, the Tesla Semi truck, a pickup truck and a new version of the Tesla Roadster.
Quick facts about Tesla:
- Tesla is listed on the Nasdaq under share code ticker: TSLA
- Tesla has 48 817 employees
- Revenue for 2Q 2020: $6.03 billion
- Automotive gross margin in 1Q 2020: 25.4%
- Earnings per share for 2nd quarter 2020: $0.50
- PE ratio of Tesla: 1000
- What this is saying you are paying $1000 for every $1 profit Tesla makes. So if you buying Tesla at $2000 a stock. Just know for a full year the firm is likely to make $2 a stock in profits. So do you honestly believe Tesla is still a good investment? Or that that type of return is a good investment?
- Shares in issue: 207 million
- Cash and equivalents on balance sheet: $8.61 billion
- Operating margin for Tesla: 5.4%
- Stockholders equity in Tesla: $9.855 billion
- Stockholders equity per share in Tesla: $47.60
- Tesla is trading at 42 times its stockholders equity per share, which is well outside the expected range of between 2 and 4 times that most firms tend to trade at. For some perspective the average price to book value firms in the S&P 500 trade at is 3.7
2nd quarter 2020 production numbers compared to 2nd quarter of 2019
Model description June 2020 June 2019 Year on year percentage change
Model S/X 6 326 14 517 - 56%
Model 3/Y 75 946 72 531 5%
Total 82 272 87 048 -5%
For more about Tesla read here
NIO Inc (NIO) stock vs Tesla (TSLA) stock performance over the last 2 years.
The image below shows the stock price performance of NIO Inc (NIO) and Tesla (TSLA) over the last 2 years. Over the two year period the two stocks provided the following returns:
- Tesla (TSLA): 609.46%
- NIO Inc (NIO): 113.96%
So NIO is still loss making while Tesla makes minimal profits per share and Tesla delivered about 8 times as many cars during the quarter than NIO. But NIO is active in one of the biggest car markets in the world and their number of vehicles delivered surged by over 320% over the last 12 months, Far stronger growth than the number of vehicles delivered by Tesla. If the price of Tesla can be pushed up as far as it has been, we can see no reason why the market wont do the same to NIO in coming months. While we believe the stock of Tesla is a bubble waiting to burst and will leave a lot of people burnt when that bubble pops, we are not opposed to taking a punt on NIO and checking if it takes off just like Tesla.