Buy Nio Shares: The Complete Guide
Published: January 24, 2021 by Valentina
When it comes to electric cars, the first name that comes to mind is Tesla. However, soon there will be another equally famous brand: Nio. Buying Nio shares could be a highly profitable investment, but what are the risks?
Throughout this guide, we will talk about both the risks and the opportunities of this asset, in order to guide you impartially.
We will also show the steps required to invest in assets, which we can summarize in 3 steps:
- Choose a CFD Broker that offers a safe and intuitive platform.
- Practice on the Demo account without taking risks.
- Make a small deposit to invest on the real market.
OnlineTradingCourse.net has selected the best platforms where to buy Nio shares without paying commissions, one of which is that of eToro, intuitive and very fast.
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 10€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Buy Nio shares: Real-time quotation and price
Nio is a Chinese car industry, which is becoming very popular in China.
The company has its headquarter in Shanghai and is specialized in electric cars. In addition, it operates in the FIA Formula E championship, for fully electric single-seaters.
The foundation dates back to 2014 by William Li.
The strength of this idea has been supported by some large multinationals such as Tencent, Temasek, Baidu, Sequoia and Lenovo.
Immediately after the group was founded, the first electric car was put on the market: the sports car Nio EP9.
Following Tesla, Nio is also developing a sophisticated autonomous driving system.
The stock exchange was listed in September 2018 with a bid of 1.8 billion dollars on the New York Stock Exchange (NYSE).
In 2020, new Chinese investors chose to invest in the project and despite the losses recorded in recent years, many are betting on the positive future of this innovative company.
In August 2020, Nio signed an agreement with CATL, one of the largest manufacturers of electric car batteries in the world.
How to buy Nio shares
Nio is listed on the NYSE, one of the most important stock market indices in the world. However, to buy Nio shares, you just need a PC and a reliable and secure online broker.
Broker security depends on some necessary factors:
- They must offer CFDs, contracts for difference, that allow you to invest both up and down (short selling).
- You don’t have to pay commissions.
- They must possess a licence either from FCA or CySEC.
To buy Nio shares (or sell them) on one of the trading platforms offered by these online brokers, you need to:
- Buy the Nio CFDs to earn money if the shares go up.
- Sell the Nio CFDs to earn money if the shares go down.
When the stock reaches the desired price, you can close the transaction and collect any net profit, without paying commissions.
Where to buy Nio shares
It is not easy to choose among the many online brokers.
This is why OnlineTradingCourse.net comes to your rescue with numerous comparative tests among the best CFD Brokers.
We leave the final choice to you, because the Broker and the platform must adapt to the needs of the trader and his style. For this reason, we advise you to test these CFD Brokers and compare them to find your ideal one.
In the next paragraphs, you will find a brief description of: eToro, ForexTB and Trade.com, which we consider the best online trading platforms on the market.
eToro: Buy Nio shares with an intuitive platform
eToro is probably the leader of the online brokers market. This is confirmed by FCA and by millions of users who use its trading platform every day.
To buy Nio shares (or sell them), you have to click on “Invest”, decide whether to Buy or Sell the stock, and how much to invest in the operation.
Its fame comes not only from the intuitive platform but also from a revolutionary patent called Copy Trading.
This system allows you to copy the market transactions of the best investors in the world (chosen directly on eToro), in a fully automated manner and at no additional cost.
To use Copy Trading you have to follow these steps:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders (which can be copied):
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Buy Nio Stocks and follow the Trading Signals
ForexTB is becoming famous in the world of trading intermediaries thanks to its operational support and its training courses.
The security of ForexTB is guaranteed by CySEC, which allows it to offer its services throughout Europe and the UK.
Traders are not all the same and ForexTB tries to meet their needs by offering two trading platforms, both free:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
To buy Nio shares (or sell them) simply click on Sell or Buy and decide how much money to invest in the operation.
ForexTB’s famous trading support is based on the Free Trading Signals which are sent to all investors. These indications are very precise and are successful 70% of the time, an excellent support for online trading.
ForexTB tries to help above all novice traders and for this reason, it has created for free a Trading Course considered among the best in its category. This ebook summarizes the basics of online trading and allows you to learn technical analysis in a simple way and with practical examples.
Trade.com: Buy Nio shares with 100€ deposit
Trade.com is an online brokers very beloved by novice traders.
Its trading platform is very professional and full of tools and indicators. Safety is guaranteed by the FCA license.
To buy (or sell) Nio shares you have to click on Buy (buy) or Sell (sell) and decide how much to invest in the operation.
Trade.com relies heavily on training, which is necessary to improve the performance of its users. The notions of technical analysis are the basis of a good profit in trading and this Broker has created a very complete trading course, a pdf that can be downloaded for free using the link below:
To open a real account with Trade.com you need at least 100 Euros, an amount lower than the average. However, to get started there is always the totally free and unlimited Demo account.
Nio business model
The Nio business model is based on the production of electric motors, battery packs and components necessary for the production of latest generation electric cars.
A company branch follows the FIA races for electric single-seaters, which focus on further development.
Below are some data relating to the company:
- Quotation: NYSE (NIO)
- Sector: Electric cars
- Foundation: November 2014
- Founder: William Li (Li Bin)
- Headquarters: Shanghai, China
- Revenue: USD 720.1 million
- Net profit: – USD 1,401.9 million
- Employees: 4,000
Is buying Nio shares worth it?
This company is very young, but as we have seen in the case of the famous American rival, the future belongs to this type of cars; therefore, many investors are trusting the Chinese company.
Nio is going through a liquidity crisis, but it is well organized. Cars are considered very good and future projects are successfully launched so, if you choose the right timing, buying Nio shares can be very convenient.
The growth trend leaves no room for doubt: Despite the slowdown in the sector in 2020, caused by the coronavirus pandemic, the upward trend is very strong:
Among the innovations brought forward by Nio, there are the “recharge” stations where in about 3 minutes the battery is changed with a charged one. To speed up charging times, which has always been the Achilles heel of electric cars, this is an innovative idea.
Here are some of Nio’s competitors. However, only Tesla can be considered a direct competitor. The other manufacturers are either too small or are not delevoped enough in the sector of electric cars.
Nio shares forecasts
Nio’s situation is still uncertain: It is delayed with the delivery of the vehicles and it does not have its own factory. Indeed, it is paying another Chinese industry to produce its cars.
These “problems” are eating up all the profits, but investors believe they will soon be solved.
International analysts view Nio as a highly speculative investment. The company is still small and despite having strong backers, it is unable to walk on its own legs.
The challenge it is trying to overcome is to become the leader in China for electric cars, which are spreading with incredible speed.
The forecasts for this asset are uncertain in the short term, but find an almost unanimous opinion on the long term. Here are some of the ratings from leading market analysts:
- JPMorgan Chase & Co. upgraded the Nio stock from a “neutral” rating to an “overweight” rating.
- Bank of America reiterated a “buy” rating on Nio shares.
- Deutsche Bank Aktiengesellschaft hypothesized a hedge on Nio’s shares with a “buy” valuation for the company.
- Credit Suisse Group raised Nio’s target share price from $ 17.50 to $ 25.00.
- UBS Group has upgraded Nio’s shares from a “sell” rating to a “neutral” rating.
- Zacks Investment Research has upgraded Nio’s stock from a “pending” rating to a “buy” rating.
Nio Target price
Leading international analysts have issued valuations and pricing targets for Nio. The 12-month target price for Nio is $ 40.00.
Some believe that Nio could become Tesla’s antagonist worldwide. We are still a long way from this goal, but we have described the elements that make this asset so interesting.
Buying Nio shares can still be highly risky, but there is no doubt about the potential of this company. Nio is backed by some big Chinese investors, who strongly believe in this electric car manufacturer.
If you are still inexperienced in online trading, you should do some tests on the Demo account that online brokers offer. Only after familiarizing yourself with the platform, you can make the minimum deposit required by the chosen Broker and invest in the real market.
Here are the official links to access the Demo accounts of the best online brokers:
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the Trade.com Demo account for free from this link
Nio is a Chinese company that makes electric cars in the wake of the American Tesla.
According to leading analysts, yes, but you need to have a long-term perspective to get good returns.
The 12-month target price for Nio is $ 40.00 per share.
CFD brokers like eToro offer the best platforms to buy Nio shares safely and without paying commissions.