Back in July, when NIO Inc. (NYSE: NIO) was trading for $7.75 per share, I put a $30 price target on the stock by the end of the year…
I was wrong.
After another earnings beat and a 12.5% pop today, NIO is now trading for $55.40 per share.
That's a 615% return for investors who took my recommendation at $7.75.
So today, I'm going to reveal where I think NIO could go from here…
How Much Further Could The “Tesla of China” Grow?
Headquartered in Shanghai, NIO Inc. (NYSE: NIO) is China’s largest electric automobile manufacturer. That’s why it trades as an American depositary receipt (ADR) on the New York Stock Exchange.
NIO operates in China's premium electric vehicle market and was founded in 2014 by William Li, the Chairman of Bitauto and NextEV.
The company designs, manufactures, and sells smart and connected premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving, and artificial intelligence.
NIO sells vehicles through its own sales network, including NIO Houses, NIO Spaces, and their mobile application.
Its SUV model include the ES8, ES6, and EC6, which range in price from $50,000 to $100,000 (similar to Tesla’s offerings).
The majority of NIO’s revenue is earned from selling SUVs, but the company also sells its EP9 supercar $1.5 million apiece.
NIO builds electric supercars to compete in the FIA Formula E Championship – the first single-seat, all-electric racing series.
NIO’s early investors include Chinese giants like Tencent, Baidu, Lenovo, and even the American venture capital firm Sequoia.
Up over 1,392% already this year, NIO is one of the top performing stocks of 2020.
It's up considerably more than Tesla Inc. (NASDAQ: TSLA) even – only up 506%.
The big difference between these two companies is market cap. TSLA is worth an insane $493 billion, while NIO is only worth $76 billion.
Are they overvalued?
Potentially – but I'm certainly not betting against NIO or TSLA ever.
Let me repeat that – do NOT short NIO or TSLA.
Betting against this kind of bullish momentum is like trying to jump in front of a moving train.
Your downside risk is unlimited and you could find yourself getting margin called within a week.
That being said, if you own some NIO stock, I wouldn't blame you for wanting to take some profits here.
You could take half your profits off the table and let the rest of your position ride free – for example.
If you don't already own NIO, wait for a pullback to $50 per share and buy more there.
It could be on it's way to $100 per share by early next year…
My friends complain all the time about charging their Teslas. It takes five hours. And that’s just when it’s half dead.
So imagine their surprise when I recently told them about a brand-new green technology that charges not in hours, but in less than five minutes.
It’s as quick as filling a tank of gas, except there’s no carbon emissions…
It lasts hundreds of miles longer…
And it NEVER dies — it can recharge forever.
The only thing it emits is pure, clean drinking water.
Best of all, it’s cheaper than batteries. And safer.
I tested this technology myself recently…
And it’s so remarkable that I now agree with the experts who say: “this is the Tesla killer.”
Bloomberg projects it to “skyrocket 1,000 times over.” And best of all…
Don’t wait another moment.
Now you can lock in its shares for a few dollars, instead of $300 like Tesla.