The Nio stock investors have some expectations with the government of China. They want the government to make Nio a strong competitor of Tesla. And, the stock price of the company is such that it can be called the mini-Tesla.
What Does Citron Research Have To Say About the Nio Stock?
It is said that a stock is going to be volatile if it is sold 10 times more than the revenue. This is the case with the Nio stock as well.
Earlier this month, Citron Research had put out a stock sale. As a result of this, the shares were briefly hit. According to Andrew Left from Citron, Tesla maintained its cut in China. They did so by cutting the prices, repeatedly. He then questioned if Nio had the potential to compete with profit.
There is an electric-vehicle bubble scene that is going on right now! This is not the first time that this kind of scene has risen. It has occurred with marijuana, Bitcoin, and the most recent, the Coronavirus vaccine. The response of Bulls will be that Moderna, the company behind the Coronavirus vaccine, are holding their profits, and, that Bitcoin is again going through the bubble. What it also says is that the place where Nio currently trades is above wherever it did before when Citron said sell.
How To Know If Nio Stock Is In An Electric Bubble?
How do you know if that is the case? Well, Nio Stock is not the only electric-vehicle company from China, that is getting back up from investors.
The current worth of Li Auto is $36 billion. This is because they rose more than two times this year. The valuation of Xpeng currently is $52 billion. This happened after they increased by more than three times.
Investments are also getting drawn by the electric companies of the US. The current worth of Workhorse Group and Lordstown Motors is $3.5 billion and $5billion, respectively. Not only that, even the gas-companies, from old times, hoping for electrics, got into gear.
Nio is getting pushed by the Republic of China as the biggest electric vehicle company in this revolution of electric vehicles. As a replacement for Tesla. This might be the best news for the stock investors of Nio.