Nio stock is one of the hottest in the electric vehicle stocks world right now. As of December 23, 2022, a share of Nio is $10.97. So, Nio is trading at a reasonable price. But the question is, is it worth it? After all, Nio is a new company (comparing to Tesla, for example); it is not profitable yet; and it’s a Chinese company.
Buying Nio stock, as buying any individual stock, should be approached with caution. The electric vehicle (EV) industry is on the rise. And Nio is a leader in that industry (at least in China). Therefore, the potential for the stock’s growth is high. However, before deciding to purchase Nio shares, you must do your research.
If you’re curious how to go about buying Nio stock here’s how to do it.
If you need help figuring out if Nio is a stock worth buying, a financial advisor near you may provide some guidance.
Buy Nio Stock: Learn About the Company
Before we address the question of how to buy Nio stock, we need to know about Nio. Nio was founded in 2014 by William Li. It is a public traded company involving in electric cars and clean energy. It’s often referred to as the Tesla of China. The company is headquartered in Hefei, China and has several offices (called Nio houses), in China, and Europe, including Germany, and Norway.
Specifically, Nio designs, develops, manufactures, and sells smart electric vehicles in China. It offers five, six, and seven-seater electric SUVs, as well as smart electric sedans. The company is also involved in the provision of energy and service packages to its users; design and technology development activities; manufacture of e-powertrains, battery packs, and components; and sales and after sales management activities.
In addition, it offers power solutions, including Power Home, a home charging solution; Power Swap, a battery swapping service; Power Charger, a fast-charging solution; Power Mobile, a mobile charging service through charging vans; Power Map, an application that provides access to a network of public chargers and their real-time information; and One Click for Power valet service, where it offers vehicle pick up, charging, and swapping services.
Further, the company provides repair, maintenance, and bodywork services through its NIO service centers and authorized third-party service centers; statutory and third-party liability insurance, and vehicle damage insurance through third-party insurers; courtesy vehicle services; roadside assistance; data packages; and auto financing and financial leasing services. Additionally, it offers NIO Certified, a used vehicle inspection, evaluation, acquisition, and sales service.
Nio is listed on the New York Stock Exchange (NYSE) and all prices are listed in US Dollars. Nio employs 15,204 staff and has a trailing 12-month revenue of around $43.1 billion.
Buy Nio Stock In 2 Ways
There are a 2 main ways to buy Nio stock. You can buy a Nio share through a brokerage account or through a financial advisor.
Buy NIO Stock Through a Brokerage Account
The easiest way to buy a Nio share is through a brokerage account. Here are some steps by steps:
- Compare brokerage platforms to help you find the one that fits you. Webull, Ameritrade, Vanguard, Fidelity, Robinwood are great brokerage firms to to buy Nio stock from.
- Open your brokerage account by completing an application with your information.
- Confirm your payment information
- Research the Nio stock. Find the stock symbol (NIO) and research it to decide if it is a good investment for you.
- Buy your Nio stock now or later. You can buy your desired number of shares with a market order or use limit order to delay your purchase until the stock reaches a desired price.
Buy Nio stock through the help of a financial advisor.
Another simple way to buy Nio shares is through a financial advisor. Financial advisors can advise on multiple money subjects. They can advise on how to buy a house, how to save money for your children’s education, or how to invest money and in which investment vehicles to park your hard earned cash.
Finding the right financial advisor that fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with fiduciary advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is legally bound to act in your best interests. If you’re ready to buy Nio stock, get started now.
Should You Buy Nio Stock?
The fact that Nio has been growing does not mean its stock will be hot as well. Taking the time to research the company can help you make an informed decision as to whether you should add it to your portfolio.
Does Nio Stock Fits into Your Portfolio?
If you’ve decided that Nio is right for you personally, then the next step is to decide if its stock will align with your investment goals and risk tolerance.
Nio is in the electric vehicle sector, and that means it can add diversification to your portfolio.
For many people especially beginner or conservative investors, the best way to do that is through mutual funds or index funds. Rather than buying individual stocks, they invest in mutual funds that expose them to a range of different stocks.
So, if one stock within the fund is not performing well, the other stocks balance it out, thus spreading the risk. A Vanguard mutual fund and many other companies will likely hold shares of Nio when they are available.
How much you should invest in Nio?
Before you decide to buy Nio stock, whether it’s a thousand shares or 50 shares, you should be thinking how much money to invest.
Nio stock was in the 60’s at some point. Expect it to get to that point and beyond again.
Regardless of the price, you should invest your money in a stock that is likely to grow in value in the long term. In other words, make sure Nio stock is a good value stock before you buy it.
One of the best indicators of whether a stock has a good value is the PE ratio. The P/E ratio measures the price of the stock relative to the company’s earnings or profits, giving you a good sense of the stock’s value.
So, the P/E ratio is very important in evaluating a stock.
Another indicator is a dividends. Dividends is money the company pays yearly or quarterly to its shareholders.
Most companies pay out dividends. But the ones that have consistently paid dividends, during good and tough time, are usually good ones. The downside of owning Nio share is that the company does not pay out dividends.
So, the stock price alone does not tell the whole picture of a stock.
Buy Nio Stock: The Bottom Line
Nio stock might be a good buy for you. However, your decision to purchase Nio shares will be based on your research of the company and whether this type of stock fits into your investment portfolio. But if you’re looking for a great EV stock, then Nio could be a worthwhile buy.
20 Questions to Know If You’re Ready for Retirement
Finding the right financial advisor that fits your needs doesn’t have to be difficult. SmartAsset’s free tool matches you with fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is leally bound to act in your best interests. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.