Electric vehicle (EV) maker Nio (NIO 0.09%) plans to have a busy 2022, with new models being launched and the company expanding further outside of its native China. But the stock has been punished along with many other names in the growth and tech sectors so far in 2022.
Nio shares are down about 23% year to date and have been almost cut in half in the last six months. The company reported its January vehicle-delivery data today, and after an initially negative reaction from investors, the stock bounced back up. It's worth a look into whether that rebound was appropriate and if now is a good time to buy.
Nio expects to begin shipping its new ET5 midsize sedan this September. Image source: Nio.
Nio has said it plans to launch three new products this year. It is already taking orders for the ET7, which will be its first sedan model, with deliveries expected to begin at the end of March. That will be followed by the midsize ET5 sedan that the company plans to start shipping in September 2022.
The ET5 will be priced at about $50,000 prior to any available subsidies. But customers who subscribe to Nio's Battery-as-a-Service (BaaS) option will be able to save $10,000 on the upfront cost and use the company's growing battery-swap network to get a new, fully charged battery in just minutes. That service helps set Nio apart from competitors and brings the company a subscription income stream.
Chinese Rival XPeng outsold Nio last month, causing some investors to briefly knock the stock down before it bounced back today. But even with slightly slowing growth, Nio's monthly deliveries have been on an overall higher trajectory over the past two years, as the chart below shows.
Data source: Nio. Chart by author.
Nio has also been working to double its production capacity and has plans to expand in Europe this year beyond Norway, where it already has an established business. While the stock bounced slightly today, its recent drop, along with other growth and tech names, could make now a good entry point for long-term investors wanting exposure in the EV sector.
