Traders, I have a question that’s probably going to make you roll your eyes and laugh, but hear me out…
What do the movie “The Matrix” and this video’s topic have in common?
They have the same main character… even if the spelling is a letter off.
Nio Inc. (NYSE: NIO) is a Chinese electric vehicle (EV) maker I’ve covered a lot in the past year. It was even a pick for my Sweet Spot Stocks strategy back when it was in the teens — and we sold half of our position for a 50% gain!
Despite that, I’ve had some polar opposite views on the company. But now I want to settle a debate.
Is Nio the best Chinese EV stock, and is it back on track to $100 a share?
The EV space in general is a hot topic right now… As most of you know, I recently dropped $40,000 into Tesla Inc. (Nasdaq: TSLA) — and it’s been working out beautifully!
At the beginning of the year, I said Nio’s share price would hit $100 by the end of 2021.
But toward the end of May, after a big sell-off, I ranked Nio in my “second tier of crappy EVs.” I was high on Ford Motor Co. (NYSE: F) after the announcement of the F-150 Lightning, a full-sized EV pickup truck.
But I want to focus on the best Chinese EV stocks and where that market is trending…
Starting with Nio, which has been on fire of late…
In order to crown a winner in the Chinese EV market, we have to get an idea of where that market is going.
I looked at Nio’s chart to get an idea where the sector might be headed.
In January, when I said that Nio could climb to $100 per share by the end of the year, it was trading at $69 before experiencing a big pullback to around $40 — which I also predicted in the video linked above.
But the big indicator I’m looking at is implied volatility, which is low with earnings still a ways off on Aug. 9. Despite low volatility, Nio is up 25% month-to-date for June after Wednesday morning’s spike — which is pretty big.
So will Nio emerge as the best Chinese EV stock against its competitors?
We’ll have to wait for its earnings event in August — when volatility increases. Check out my short video and let’s talk about Nio as the best Chinese EV stock… and whether it’s back on track to $100 a share.
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P.S. Every trader wishes they could have been on the “inside” of a crypto opportunity… But now there’s a new opportunity from Forbes contributor Adam Sarhan that can do just that…
An opportunity that will make Bitcoin look as boring as a treasury bond.
Mainstream outlets haven’t yet picked up on this developing story, but don’t wait on this…
We are only a few weeks away from the “convergence”…