If You Invested $1,000 In Nio Stock One Year Ago, Here's How Much You'd Have Now


Investors who have owned stocks in the last year have generally experienced some big gains. In fact, the SPDR S&P 500 SPY total return over the last 12 months is 58.8%. But there is no question some big-name stocks performed better than others along the way.

NIO’s Big Run: One company that has been a great investment in the last year has been Chinese electric vehicle company Nio Inc - ADR NIO.

Nio went public back in 2018, but the stock initially struggled due to mounting losses and dilutive capital raises. In 2019, Nio reported just $7.82 billion in revenue and a net loss of $11.41 billion. The company also had $7.15 billion in long-term debt.

In 2020, Nio benefitted from an increased commitment from the Chinese government to invest in EVs, eliminating Nio's capital crunch. Around the same time, EV stocks caught fire in the U.S. market.

See also: How to Buy Nio Stock

Along the way, Nio was reporting some spectacular sales growth numbers. The company reported 43,728 vehicle deliveries in 2020, up 112.6% compared to 2019. Nio's revenue jumped to $16.25 billion in 2020, and its net loss dropped to $5.61 billion. While Nio still represents only a tiny fraction of the global auto market share, the company has transformed from a penny stock struggling to stay solvent to one of the top-performing stocks of the past year.

Fortunately for Nio investors, the COVID-19 pandemic didn’t negatively impact the auto industry nearly as much as experts had initially feared.

At the beginning of 2020, shares were trading at around $4.10. When March kicked off, the stock was still at around $4.15 following a major coronavirus outbreak in China.

Nio ultimately bottomed at $2.11 during the pandemic-driven March sell-off, but the dip did not last long. By June, NIO shares were back up to $4, and NIO was up above $10 by July.

Related Link: If You Invested $1,000 In Tesla Stock One Year Ago, Here's How Much You'd Have Now

NIO In 2021, Beyond: Strong momentum in EV stocks coupled with impressive sales growth numbers ultimately pushed Nio shares as high as $66.99 in January 2021. However, Nio and other high-growth stocks have since come back down to earth a bit, and the stock is now trading at around $35.

Nio investors are now weighing the possibility of massive long-term, government-subsidized growth in China’s market of more than 1.8 billion people against the company’s still sky-high $59.6 billion market cap and a price-to-sales ratio of 24.

Still, investors who bought one year ago and held on have generated a massive return on their investment. In fact, $1,000 in NIO stock bought March 29, 2020, would be worth about $12,400 today.

Looking ahead, analysts are expecting another big run for Nio's stock in the next 12 months. The average price target among the 18 analysts covering the stock is $63.49, suggesting 81.1% upside from current levels.

Market News and Data brought to you by Benzinga APIs
Posted In: EducationGeneralelectric vehicles
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!