Dear reader, if you have been following emerging automobile manufacturers, you likely know about Nio. Dubbed the "Tesla of China," Nio produces smart electric vehicles equipped with innovative features like battery swapping and autonomous driving assistance.
Founded in 2014, Nio delivered its first volume manufactured car, the ES8 SUV, in 2018. Since then, it has launched multiple new models and unveiled plans to enter Europe. As of September 2022, Nio has delivered over 260,000 vehicles cumulatively.
However, like many high-growth companies, Nio‘s share price has seen major ups and downs. After surging over 1000% in 2020, the stock has dropped over 60% year-to-date in 2022 amid a broader market selloff of Chinese equities.
But with record monthly delivery numbers and ambitious expansion goals, long-term investors are viewing this as a buying opportunity for Nio‘s future upside potential.
If you want to gain exposure to this Chinese electric vehicle trailblazer, here are a few easy ways to get started:
Purchase NIO Shares Directly
The most straightforward option is to directly buy Nio‘s American Depository Receipts (ADRs) listed on the New York Stock Exchange under the ticker NIO.
You can easily set up an online investing account with brokers like Fidelity, ETRADE or Charles Schwab. Then simply search for NIO and purchase the number of shares you want, just as you would any other stock.
Each NIO ADR represents ownership of 1 ordinary Nio share trading on the Hong Kong Stock Exchange. So when you purchase the ADRs, you gain exposure to Nio‘s actual business performance.
Invest Through Relevant ETFs
If you prefer diversified investments rather than buying Nio shares outright, several electric vehicle and China tech ETFs provide exposure:
| ETF Name | Ticker | Assets Under Management | Top 10 Holdings | NIO Allocation |
|---|---|---|---|---|
| Global X Autonomous & Electric Vehicles ETF | DRIV | $391 million | Tesla, NIO, BYD, Li Auto | 2.97% |
| KraneShares Electric Vehicles and Future Mobility ETF | KARS | $539 million | BYD, Contemporary A-S, LG Chem, Tesla | 5.18% |
| Invesco Golden Dragon China ETF | PGJ | $192 million | Tencent, Alibaba, Meituan, JD.com | 0.85% |
As shown above, the KraneShares KARS ETF has the highest percentage allocated to NIO shares – over 5%. Investing in KARS provides exposure to Nio‘s upside along with a basket of other electric vehicle stocks.
Track Trends Impacting NIO‘s Stock Price
As an innovative player in the fast-moving EV industry, Nio‘s growth relies heavily on execution and adoption in China‘s massive automobile market.
Monitoring the following trends can give insights into how Nio is positioned to ride secular tailwinds:
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Monthly vehicle delivery figures – Key indicator of consumer demand. Nio achieved a record 12,206 deliveries in Oct 2022.
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Energy infrastructure expansion – Battery swap stations and superchargers to ease adoption. 900+ swap stations operational.
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Europe market entry – Nio began Norway deliveries in 2022, provides access to overseas expansion upside.
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Partnerships – Collaboration critical for self-driving and next-gen battery tech. Partners include NVIDIA, Qualcomm.
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Policy environment – Subsidies and EV supportive regulations in China, a key growth driver.
While risks around rising competition and geopolitics cannot be ignored, tracking Nio‘s progress across these areas will determine if strong growth can continue.
I hope this breakdown gives you clarity on how to invest in China‘s leading electric vehicle manufacturer Nio. Whether buying the stock directly, or gaining exposure through ETFs, Nio allows playing a potential disruptor in the making.
Let me know if you have any other questions!
