Recently, I was looking for feedback for my ISA portfolio. AND Nio (NYSE: NIO) caught my attention, considering that the actions fell by almost 20% during the year.

In four years it crashed by 92%, and now it trades for only USD 3.50!

NIO has a long problem

Established in 2014, it is a Chinese manufacturer of an electric vehicle (EV), which focuses on the premium segment, especially SUVs and sedan.

However, what distinguishes it is stations with a battery where drivers can replace the battery in a few minutes, not charged. NIO supports around 3354 of these stations, with a extensive majority in China.

The company was called ‘Tesla China ‘. But this nickname is no longer used, because it has never made profit, and its market capital worth USD 7.3 billion is a fraction of Tesla.

Consistent losses have always accumulated me for investing. In 2024, the company delivered 221,970 vehicles, which is an boost of 38.7% year -on -year, generating revenues by USD 9 billion (18% boost). However, he still lost USD 3 billion, almost the same amount every year earlier.

In the first quarter, the company lost another USD 930 million, which is 30% more than a year ago. However, CFO Stanley Yu Qu tried to peaceful investors: “From the first quarter, we have implemented a number of cost control measures, including organizational restructuring, integration between the brand and performance improvement … from the second quarter, the company aims to achieve structural improvement of total cost performance. “

I read it Déjà VU because he doesn’t say such things all the years in which I followed him. However, the losses are still coming, and the price of the shares is constantly decreasing.

Siniak price war

Another thing that discourages me is the brutal EV price war in China, the home market. This does not show any signs of restriction and the EV giant Hunter Recently lowered prices in some models. Apparently, the Chinese government is very worried about the industry.

The price war is like Anaconda, returning profit margins. In such an environment, I doubt that he has any real price force.

Having said this, he introduced several cheaper sub-marks to refer to various customers. ONVO is a family -oriented, and Firefly is a smaller high -class EV. Perhaps they can stand out on the increasingly crowded Chinese EV market.

My movement

Analysts currently forecast a 35% boost in revenues this year. Although at first glance it is impressive, the losses will last for many years, according to the same forecasts.

Of course, we cannot assign a p/e indicator because there are no earnings. In terms of price, there is only 0.75 times for sale.

This may be a generational opportunity, if there is a weapon suspension in the EV war, recent brands are selling like hotcakes, and finally brings profit.

However, there is too much if IF for me. And with only USD 3.6 billion in cash and equivalents at the end of the first quarter, I’m afraid that the company will soon need another injection of capital to maintain the factory lights.

Weighing everything, I am not more stubborn for $ 3.50 than for $ 10. So I will be looking for this potential return supply elsewhere.