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Well guys this is a beast video today! We are going to be talking about NIO STOCK. Nio stock has been one of the most popular stocks in the stock market lately. I am going to talk about Nio stock price and why it has gone up so much. Also I will let you know my opinion on Nio stock. Is it a stock to buy now? Or is it a buy to watch now?
Hope you enjoy this beast video about Nio Stock. I will go in-depth about this stock and what I think. Leave me a comment with your opinion. Are you a owner of Nio stock? If not, are you thinking about buying Nio Stock? Also let me know if there is a stock to buy now or a stock to watch now.
Want to join our free STOCKHUB discord chat? Here is the link https://discord.gg/SVWd2qq This is where you can chat for free with other investors in the stock market about individual stocks or things going on in the market. Enjoy!
*My Instagram is : FinancialEducationJeremy
Hey guys, welcome to today’s video. First off, thanks for joining me on this absolute beast of a video I have for you guys today. Oh my goodness, okay, we’re gonna be talking about NIO stock in this video NIO limited ticker symbol NIO new stock is over $64 per day, up 9%.
The market capitalization of this company is now over $100 billion, just absolutely massive. Okay. And for some context, for those of you that might not know a lot about the stock market when you start hitting market caps of over 100 billion, okay, you’re talking about a really, really large corporation. Okay, so that is a crazy number, people see EP s of negative $44.
And like, what negative $44 Ep s that sounds crazy with $100 billion market cap, you see a 52 week range that is about as epic as you will ever see in your entire life in the stock market. Okay, the 52 week range in the stock is anywhere from $2 to $66 a day. That’s absolutely incredible. And keep in mind, there’s been no splits for the stock. So it’s not like there’s been some splitters and reverse split or something like that.
Okay, absolutely incredible. Kate, a lot has happened with Nio stock in the past year. Okay. And so in this video, I want to do two things. Okay. Well, we’re going to do so much take, we’re going to catch up on knee Okay, we’re going to talk about where the company’s at where the company is going. We’re going to talk about the numbers. We’re going to talk about the valuation.
We’re going to talk about the Cayman Islands. We’re going to talk about corporate structure. We’re going to talk about Chinese stocks in general, we’re going to talk about the good the bad everything in between in this video and that’s why it is such a beast. Okay, it’s actually pretty easy just to put together like a really bullish video that’s just super positive.
It’s actually much more challenging to kind of talk about all different sides of these things and things for different people to consider out there. Okay, then we’ll talk about my opinion on the stock do I feel like this stock is a buy a sell a hold a weight, all those sorts of things. So hope you guys enjoy this bs video I have for you guys here today. If you don’t mind, smash that thumbs up button. It helps YouTube channel out in a massive way. Help Jeremy get a new multivitamin.
Okay, one thumbs up equals one multivitamin to keep Jeremy healthy, okay, the man needs to stay healthy. You want to join this stock up and it’s absolutely free to do so that is a best and biggest free discord chat in the world when it comes to stock market investing in literally, I created a NIO investing chat right now. And it is just about to go crazy.
Like I just created that in there. So if you’re into NIO stock, you’ll definitely want to join in there. All right, already, guys, let’s start getting into this. Okay, so NIO stock. So we’ve talked about this stock a few different times on the channel, I talked about it when it went IPO, I didn’t like it at 13.
And then you know, because of where the company was at at that particular time it went down like I don’t know, 80 or 90% from the $13 when it went public.
And then they talked about it when it was like at $3 a share. And I actually said it was a very interesting stock and it actually looked like you know pretty attractive risk reward. I wish I would have bought some because the stock was like $3 when I did that video, and I mean $10,000 in that stock literally on that date. And I recorded that would have gone into $200,000 plus now.
Okay, imagine 100 k into it, and then you’re at $2 million plus, and that video was I think a 2019 video I had put out there and I must say I hope everybody that bought that stock because I was reading through the comments.
I was like oh, I gotta go check out these old comments and there’s definitely people were buying in the two to $3 range and I just hope all those people that were buying held the stock because they made so much dang money is ridiculous. Look at this one buying hold and forget I will check again in four years. Okay, look at this one.
It says this person says they just bought 3000 shares in NIO and they’ll say I see you guys on my yacht soon. Okay, so hey, we need to ask a Smash Brothers brawl.
Like if we can go on a yacht ride on his yacht because he says he says he has a yacht now like or he was gonna have a yacht and man, you know, NIO stock piece mode. Only thing is I don’t know why I didn’t spell Neo right.
And I don’t know why I spell yacht right. But that’s beside the point man’s got an update. And then while I was looking at those comments, I saw this comment, okay, this was funny, okay, this guy was like, this clown told me Tesla is going in 2000.
Now it’s 200 blah, blah, blah, oh, man, the Tesla eight back then was really people don’t really get it. Like people don’t really, that weren’t around back in the day when I was first of all super bullish on Tesla and was buying that stock and was talking about all the time in the Tesla.
He was so real, by the way, Tesla’s now over $4,000 a share on a split adjusted basis. So all that I care about in the end is that I’m on the right side of history. You know, people can you know, hate in the short term and say negative things. But at the end of the day, all that really matters is are you on the right side of history or not? And that’s it. Okay, never be as scared to take some short term heat because people don’t believe in something.
All right. So first off, let’s be clear, we have to be clear about this. And we have to talk about this right from the jump take. Neo is the most popular stock in the entire stock market right now. bar none. Okay.
I mean, you’re watching this video from a guy that literally talks about stocks all day, every day pretty much Monday through Friday and keeps up with You know, all these different stocks and like what’s the most popular stocks that people are talking about at given times? And there’s nothing hotter or more popular right now than Neo stock.
I mean, look at the type of view counts, Neo videos are getting in general where people are talking about their opinions on Neo stock, okay, there’s no stock in the stock market that is getting those sorts of views right now at the moment. There’s literally no stock Okay, this stock Neo stock is getting crazy views not even Tesla stock is touching these sorts of view counts at the moment. I mean, it’s absolutely extraordinary.
The type of views that are coming in for Neo stock and how popular This is right now. And then my man, JJ Buckner, he puts out a new video two days ago, his seventh most viewed video ever on his channel like Congrats, JJ if you ever get to see this man, that is flipping amazing, mainstream media is talking about Neil stock even Okay, and look at the type of view counts these videos are bringing in for CNBC, Wall Street Journal, the fact is, there’s no stock in the entire stock market right now, that is as popular and as hot of a stock to talk about right now.
The Neo stock bottom line. And so with that being said, I actually see this guy’s having trouble with this law. Moreover, right back, I gotta go help him. I already know I’m back. Okay. All right. So next thing I want to talk about here before we start getting into the numbers, the valuation the CEO, different things like that. Okay, we got to talk about that fact that Neo is a Chinese stock, okay.
Which means there’s obviously a lot of drama long term with Chinese stocks. Okay. There’s, there’s just so much dang drama, like the, you know, the Chinese stocks can go through a period for six months, 12 months, 18 months, where there might not be much drama, but the next thing you know, all sudden, like the US government’s getting involved, the Chinese government’s getting involved, there’s always drama with these stocks long term, and there’s trust issues with Chinese stocks. Okay, we have to acknowledge that.
And we have to admit that before we can move on whenever you’re talking about any Chinese stock. I mean, you guys have probably seen the China hustle, right? Like there’s obviously in for obviously a like a lot of good reasons. There’s trust issues with Chinese stocks. And there’s always drama,
Alibaba, the biggest beast out of China, right? Everybody always says it’s the Chinese Amazon, right? Little different business model. But still, like there’s no bigger beast out there for Chinese stocks than Alibaba. And just in the past few months, there’s been so much drama with Alibaba, right. It’s like,
Where’s jack Ma, no one’s heard from jack Ma, even though jack ma is not the CEO of that company anymore, or the chairman or anything like that. Still, he’s like, the biggest shareholder and like no one can find jack Ma, like he you know, he hasn’t basically spoken publicly at all.
And he usually always speaks publicly and so many different things. And all sudden, he said, you know, a few kind of somewhat negative things about the Chinese government. And also, you know, jack ma is nowhere to be found in supposedly, you know, somebody heard from, like, sources that jack ma was fine in those sorts of things. But we don’t we don’t have any proof of anything.
So where the heck jack ma is and financial situation, which is a Chinese government is trying to get involved with with and financial. And a Chinese billionaire had said in the past previously, that he basically said that the Chinese government was going to try to take ant financial over time, and now’s and you hear all this drama about and financial?
And what’s going to happen there. And is it still going to be part of Alibaba? And then obviously, you have the US kind of, you know, talking about delisting of Chinese stocks and things like that in the past.
And like, you know, this is a it’s always some drama, okay. And I know about drama stocks, because I use own alibaba stock. And I’ve owned Chinese stocks before. Another perfect example of a drama stock own is not even a Chinese stock.
It’s Facebook, like Facebook’s always involved in some drama. And that always holds that stock back.
And there might be a few months where nothing bad happens in the stock rises. But then all of a sudden, oh my gosh, it’s like the government wants to break up, you know, Facebook, and they do this and do that. Always drama in drama stocks.
It’s just frustrating to hold them because they’ll have really good periods and then all of a sudden, it’s like bad news. Bad news. Okay. Now, let’s start getting into some of these numbers around Neil, this was from its latest quarterly results, which was less than two months ago. Okay.
The fact is, that your your deliveries up substantially from 4799 vehicles to over 12,000 deliveries in q3 of 2020. That is very, very impressive. Bottom line. Okay. Now, if you look at 2018, q4 versus 2020. q3, it’s not as impressive from 8000 units to over 12,000 units. And while that’s still nice growth is not as impressive for hyper growth.
But keep in mind, a lot of times we like to look at year over year, okay. Vehicle sales increased 146% year over year. I mean, you know, there aren’t really any other autos are not very many companies growing at those sorts of rates.
Okay, that’s absolutely extraordinary. 146% year over year, look at vehicle margin, vehicle margin, his latest quarter came in at 14.5% versus negative 6.8%. In the previous year in the same quarter.
That’s a huge deal. Guys, that’s a huge deal. If you look at gross profit here massive difference came us $86 million in gross profit and it’s mostly suncourt compared to RMB $221 million loss the previous year in the same quarter. Okay, so the business getting to a much better place.
Gross Margin came in at 12.9%. And its latest quarter versus negative negative 12.1%. In the previous year’s quarter, okay, huge improvement. Their loss from operations came in at 139 million, which was a decrease of 60%. year over year massive okay. net loss came in at 154 million, which was a decrease of 58.5% year over year gain.
So bottom line with the numbers with Neo Corporation right now is this company has great growth in I think great might even be underselling it.
It’s unbelievable growth this company has right now. Okay. And if that wasn’t enough, the losses are getting less and that’s very good news. I mean, this company was bleeding money like at ridiculous levels. You go back a year or two ago, and so losses are getting less the growth is ridiculous for this company. And so that is phenomenal news.
Okay, you’re going to hear this company talk a lot of times about battery packs. Okay. On November 6 2020 neo launch 100 kilowatt battery pack with battery upgrade plans. 100 kilowatt hour cell to pack battery pack has realized 37% higher energy density than the 70 kilowatt hour battery, powered by the 100 battery, the NE dc range of Neill EC six and reach up to 615 kilometers.
That is a huge number there. The outstanding performance of the 100 kilowatt hour battery is underpinned by technological advancements, including thermal propagation, prevention, design, highly integrated architecture, old climate thermal management, and bi directional clouds cloud battery management system.
Oh my gosh, my head just went boom. Okay, unless you’re an engineer, my goodness gracious. Okay, so that’s pretty dang exciting. What did Mr. Lee have to say about the latest quarter he said, we achieved a new record high quarterly deliveries of 12,206 e s, h. e. s six is an EC six is in total in the third quarter of 2020, followed by the best ever monthly deliveries of 5055 vehicles in October did the CEO in view of the growing market demand for our competitive products.
We are motivated to continuously elevate the production capacity to the next level, we expect to deliver 16,500 to 17,000 vehicles in the coming fourth quarter.
Remember those numbers I just showed you right there, because that’s going to be important in just a minute because they just updated last week, some of these numbers they actually hit okay, so remember that 16 five to 17,000 number, look at the balance sheet. Okay. $3.3 billion.
Now on the balance sheet us okay, when this stock was a $2 stock, the BK risk was actually pretty dang high in no longer is at the situation. Just now. They’re loaded with cash. Okay, that’s a really, really good amount for this company. I mean, they were so cash poor year two ago. I mean, it was it was scary. And now they’re cash loaded. Okay.
And then as far as the upcoming quarter, they basically said, you know, growth would be between 119% and 126% year over year, which is absolutely extreme. This company was a big financial risk last year. Look at that. Okay, that’s RMB that’s not even US dollars.
RMB they only had 862,000 or NB on that balance sheet. Okay, for cash. And now you look at this balance sheet over 19 billion bar MB for this company now in over 2.7 billion RMB in short term investments for this company. Okay.
Big financial risk if you were invested in this in 2019 in respect if you did, and you went and took that leap of faith because it was at that time Okay, it just not so much anymore. Alright know last week this company put out numbers and these numbers were extremely nice.
Okay, Neo delivered over 7000 vehicles in December 2020, increasing 121% year over year, Neo delivered 17,353 vehicles in the three months ended December 2020, increasing 111% year over year. That’s impressive because that’s a beat.
Remember they guide it for 16,500 to 17,000 and then they come in with 17,353 so very nice beat there by the company. Neo delivered 43,720 vehicles in total in 2020. Increasing all 112% year over year.
These numbers are extremely impressive. No dang doubt about it. Okay. 2020 has been a challenging year for the whole world. Against this backdrop Neo has achieved consecutive record highs along the way enclose the year on a high note with a remarkable December deliveries of over 7000 vehicles, said the CEO.
These results are attributable to the growing recognition of premium brand brand is very important when it comes to vehicles.
It’s important and everything but especially vehicles, the competitive and compelling products and services, the expanding sales network, and most importantly, the continuous support from our passionate and loyal user community.
The innovative battery as a service model has shown popularity among our users since it’s launched with the 100 kilowatt hour battery pack offered as an option, the penetration of VA S has reached over 40% among new orders in December demonstrating its competitiveness and acceptance by our users have the fourth Neo day scheduled January 9 2021.
Which just happened a couple of days ago, we will unveil a new sedan and share the latest developments of our autonomous driving and other core technologies aspired by the spirit of always forward the theme of the upcoming Neo Dave we will continue investing in the smart EV technologies accelerated our new product developments broadening our sales and service network and striving to have the best holistic experience for our growing user community in 2021.
And beyond By the way, what are you guys you know, interpretation of that that Neo day I would love to hear from you guys that actually you know, watch the whole thing and whatnot what you thought a neodi Okay, look at this case. You know, I think this was about as big of a news as you could get for Neo okay. We know Nvidia is one of the top companies in the world that you really want to work with.
Okay, Neo partners with Nvidia to develop a new generation of automated driving electric vehicles. This is such huge news.
Okay, this was as big as any numbers Neo could post Okay, Neo, a pioneer in China’s premium smart electric vehicle market and Nvidia announced today that the automaker has selected the Nvidia drive origin system out and chip for its new generation of electric vehicles which will offer advanced automated driving capabilities
Neo is working to make consumer adoption of smart performance packed electric vehicles a widespread reality at Neo de the company’s annual customer event.
The Eevee maker released its Nvidia drive oron powered supercomputer dubbed atom which will first appear in the E t seven sedan which will ship in China starting in 2022.
Okay, and obviously Nvidia is taking this relationship serious and I think this is why it’s such a big deal because you get actually jimson Wong to say something on this key.
He says autonomy and electrification are the key forces transforming the automotive industry said Jensen Wang, Nvidia founder and CEO We are delighted to partner with Neo a leader in the New Energy vehicle revolution leveraging the power of AI to create the software defined Evie fleets of the future the cooperation of Neo and Nvidia will accelerate the development of autonomous driving on smart vehicles.
NIO’s in house developed autonomous driving algorithms will be running on four industry leading Nvidia or in processors delivering an unprecedented 1000 plus tops in production cars, says the founder of Neil Okay, now I actually thought that was the biggest thing to come out of all this, okay.
But also, this was the other huge thing that everybody was paying attention to. Okay, Neo et seven sedan is supposed to begin shipping in early 2022. Okay, now, the biggest thing about this car, okay, the biggest crazy thing, epic thing I guess you can say is, it’s supposed to potentially have a battery range a mile range of 621 miles on kind of the, you know, advanced version, okay.
620 million miles, I’ll tell you, that’s huge. If it’s true, if it is true, that is going to be huge for me, okay, we’ve got to see you got to kind of, you know, let’s see about this, you know, you can make all these different, you know, oh, we’re coming out with a car and you know, a year two years, three years, whatever, with, you know, such and such mile range, it’s actually got to be, you know, produced and you got to actually prove it in the real world.
You can just say all these different things, but it’s got to be proven. I mean, we obviously all remember Nikola, from this past year, right? You know, they were saying, oh, we’re gonna do this, we’re gonna do that.
And what did they actually do? You know, you got to prove these things out in the real world. And then you can kind of trust and be like, Oh, man, they’re actually doing this and so let me be very clear if they come out with a car with over 600 mile range game changer for neon that just proves that this company is really on top of things tech wise.
Okay. Now, you know, I was typing in Neo day and I saw consistently like this hilarious obsession over like Tesla competition Tesla rival and things like that. And I don’t think people just understand like how big of a market opportunity there is for not just Tesla but Neo in all these different companies like people don’t just get that okay. And when it comes to like Tesla, like, you know, us that actually drive tussles on an everyday basis absolutely loved the product okay.
Absolutely love the product like we’re gonna buy more tests us in the future like this whole like, you know, they try to make out like it’s a you know, winner take all you know, whenever the media writes about this, and it’s like, man, like, like Apple comes out with great products all the time, right?
Like, you know, I love the iPad so much I love my Mac so much like I’m gonna buy more of those products in the future as long as Apple continues to of income out of better stuff. Same exact thing with iPhone, right? YouTube, Google, I’ve been using those for over a decade.
And so the media Raiders like they always try to put these companies against each other and like, Oh, you know, if this one’s gonna succeed, this one’s gonna, you know, it’s not like that at all, like these Meteor Raiders, they just don’t understand business, you know what I mean?
Like, like, at the end of the day, like, if you love great products, you’re gonna continue to buy from those companies or use those products and services over time.
Like, that’s just the bottom line, this whole obsession about, you know, it’s Tesla versus Neo, and all these sorts of things. It’s like, it’s just so dang misguided. If one if one succeeds, the other loses. No, it’s not. It’s not how it works. And we’ll we’ll we’ll dive into some numbers in a minute, I’ll show you some numbers, and it will really open up your mind.
And this isn’t just like some niche market or something like that. Okay. Now, as far as current year, they expect to grow 120%, they should have post a little better growth than that, actually. Now, those numbers have kind of come out, which is extremely impressive, because they’re supposed to grow triple digits again next year.
And when I’m talking triple digits, I’m talking 100%. Plus, they’re supposed to hit $5 billion in revenue next year. And don’t be surprised if they come in with a beat. Okay.
Now remember, I talked to you guys just a moment ago about competition, you know, in the media trying to you know, put these companies against each other and things like that, okay. Look at this.
The amount of cars sold in China is like 20 million plus per year. Okay, I’m talking passenger cars. Okay. Keep in mind, almost all those are going, Evie by 2030. Almost all those and so if that’s true in the year 2030. That’s a 90% plus of vehicles sold in China are e V’s.
Think about how dang big the market is? Okay. Is 21 million passenger cars sold in China? Okay, how many are going to go to Tesla? How many are going to go to Neo? How many are going to go to BYD? How many are going to go to Li Otto expain and others like you know what I mean?
Like this is a massive, massive market. And we’re just talking about China. EBS, like this is huge, okay. And so the moral of the story, there’s plenty to go around. Just because I mean, if Tesla comes out with a great product doesn’t mean Tesla’s having 100% market share in China, okay, like the Tesla could have by far and away the best product in the world.
Let’s say Tesla comes out with some model two or whatever it’s called a gain of $25,000 price point. It has great ranges, great car, and it drives itself and all these sorts of things is still the main tussle is going to have 100% market share in China, I can assure you that same thing with Neo, same thing with all these players, the moral of the story is going to be plenty to go around with these different companies.
Okay. I mean, if you look at the smartphone market in China, right, it’s as big as any market you can possibly imagine.
Okay, and Apple has like an 8% market share of smartphones sold in China. And so you might think that’s an owl for Apple. Wow, they’re horrible. And in China, they only have 8% market share. No, like, like, that’s one of their most profitable markets like that. The markets amazing. Okay, that’s not an L for for Apple like, Yeah, right. You
don’t know what you’re talking about. If you say an old Apple only has 8% market share these thinking that? No, that’s not how it works. Okay, that’s still huge. I mean, think about 8% market share of cars of passenger cars sold in China. Okay.
So you know, 21 million per year at 8% market share yet almost 1.7 million cars per year, you’re selling Okay, at let’s say an ASP an average selling price of $40,000. You’re $67 billion per year at an 8% market share. Okay?
That’s like 30 x plus NEOs current revenues. All right, like 30 x plus, and that’s substantially more than like Tesla’s going to do in revenues in 2021. Like, then numbers epic, okay. And so, you know, this whole like notion about, like, you know, this just a certain amount of market and if Neo wins, Tesla loses, and if Tesla wins, Neil, that’s not the way it works.
These markets are massive, with both companies continue to innovate and come up with great products and know and have great brands, like the numbers can be substantial for both those companies over time.
And the bottom line is if Neil, if this is all true about the 600 mile range, like Neo could potentially go worldwide over time, they could expand into many, many markets outside of China. And you know, then there Tim, you know, really goes up a huge way. Obviously, the biggest opportunity is ringtone China immediately.
But long term, like if Neil really has this specialized of workers that are working on these sorts of things, getting battery packs to 600 miles plus and range, plus, let’s say they have fully autonomous vehicles, you know, a few years down the road, like they’re going to be able to go worldwide and expand their brand massively over time. If you look at a company like Toyota, right?
They saw a little over 10 million cars worldwide per year. Okay. Tesla, Neo, these sorts of companies can get to levels like this, I fully expect Tesla, for instance, to get to that number. If Neo really has this type of tech, they’re going to potentially get to that number over time 10 million plus K.
And keep in mind with with EDS, here’s a big thing. Okay, eds are likely going to be way more profitable than ice vehicles long term like ice vehicles.
You know, there’s just a lot of moving parts. There’s no autonomous vehicle software you can sell on top of it. There’s no revenue opportunities after you really you sell the car other than service and you know, service a lot of things can go wrong with those cars, especially in the short term when they’re under warranty still, and so EDS In my opinion, are gonna be a lot more profitable long term than it is goes.
And then obviously autonomous taxi network is a massive opportunity Tesla looks like it’s gonna be as good of a place as any company to actually reach that in when it comes to Neo, if they really partner with Nvidia and get this tech really going in a massive way, maybe NIO can be a player in this market and a NIOs a player in that market that obviously expands the possibilities for new long term, if NIOI doesn’t get to that place, maybe they can at least sell their cores to a player that you know, is in that space that is highly successful. Okay.
So that’s a whole other like growth vector for these sorts of companies over time. Okay. Now, when it comes to Neo, let’s talk about valuation.
Okay. You know, the valuations $100 billion right now, right? And price to sales ratios over 30? You know, there’s no doubt the valuation is sky high for Nio, if you’re looking on a short term basis, same exact thing with Tesla, same exact thing, both companies have a, you know, extremely sky high valuation, but at the same time, you look at the long term opportunity for a company like Neo, and it is massive, like we just went over the type of numbers Neo could potentially be doing, even with small amounts of market shares in China.
Never mind if they said, let’s say Neo has 15% market share 25% market share in China long term, imagine the type of numbers that company can be doing, and that’s just China. Okay. So there’s no doubt companies like Neo have huge long term Ops, especially if they’re proving out technology like they’re working on right now. Okay, and like I said, Tesla’s valuation sky high, Tesla’s at almost a 30, price to sales ratio as well. Okay. So the fact is, these companies are trading very rich.
But it’s because so many people are excited about this long term opportunity in these sorts of companies. And this is how I feel right now, okay, in investment in Neo or Tesla, or a lot of these companies in the Evie space. It’s a risk when it comes to a valuation standpoint, it’s a different risk than if you were investing in these companies in 2018 2019.
Because in 2018 2019, these sorts of companies were at real jeopardy of going bankrupt because they had lack of money around lack of funding, lack of financing, okay. And that was a different risk.
That was a risk, like maybe these stocks could go to zero. And I mean, shoot, you guys remember Tesla, you know, people just talk about all the time all the stocks going to zero, they’re gonna run out of money, blah, blah, blah. You know, obviously, it’s not a real situation a year or two ago, it looked like there was definitely a real possibility that Neo could go under.
And that’s no longer risk, the risk for these stocks to go to zero is not a you know, very realistic risk anymore. It’s just a valuation risk. It’s like, do you invest in it and the money doesn’t go anywhere for you know, a number of years or it goes down because the valuation got too high. Okay. And that remains to be seen. But at the end of the day, like I bet on Neo right now is a is honestly a bet on the CEO.
If you’re putting money in this company, you really got to be a huge believer in the CEO there. Okay. William Lee, you have to be a massive, massive believer in this gentleman. With $100 billion valuation on on this company, you have to if you aren’t, if you don’t fully have their back, and you want to fully believe in them, you know, you just can’t make that move right now.
It’s like when, you know, shortly after I bought tests, I realized I wasn’t just buying, you know, the future of EBS and the numbers they could put up in the future. I was buying into Elan musk. Okay.
And so I was taking a partial bet on that guy right there. And so the same exact thing could be said for Neil, if you’re betting on the company, you’re betting on this William Lee gentlemen. Okay. Now, let’s talk about a few other things. Okay.
Remember, some big tech companies are directly invest in Neo. Okay. So if Neo needs more access to capital or technology over time, they could potentially get it from some other huge Chinese companies that are actually literally invested in Neo okay. Also, keep in mind, China wants Neo to succeed over time. Remember, like, you know, the Chinese government basically gave them about a billion dollar bailout last year.
Okay. Well, actually, technically, two years ago now, it basically gave him a billion dollar bailout. If they didn’t get that bailout, by the way, Neo probably would have been a zero Neo probably would have been done. But China has their back.
China believes in Neo China wants Neo to succeed long term, okay. And a lot of big tech companies want them to succeed long term. And to be quite frank, a lot of consumers want you know, these companies to succeed long term because I mean, if you have traveled to China, if you’ve been in Chinese cities, the pollutions awful, like it really, really is awful. Okay, so I think a lot of people are rooting for these Evie players. Okay.
Now, let’s go down the rabbit hole of corporate structure for a minute. What do you actually own if you own Neo stock? Okay, so first off, keep in mind Neo is a Chinese Corporation in China, okay. And we talked about some things you know, you have to deal with there, okay. But also this company is registered at the Cayman Islands. Okay.
So if you’re investing in Neo, you’re essentially putting your money in the Cayman Islands in this company stock that is, you know, then backed by, you know, a company in China essentially. Okay.
As far as Cayman Island exempted companies, they received the following benefits 100% foreign ownership, no taxes, privacy, limited liability, one shareholder director for greater control, no audits, okay? No audits is an important line there. Because it doesn’t mean you know, they have to audit that but it’s still in China, they’ll likely still audit. Now. Keep in mind when the audits are done. In China, they’re usually done by Chinese firms. Okay.
If you ever seen something like the China hustle like the past, you know, problem with the past was, you know, those audit firms were just making money and they weren’t really even actually auditing the companies.
They were just saying they brought in companies. I hope, you know, things have gotten a lot fixed over the past 578 years since that documentary came out. And, you know, a lot of things came out around that. But just that is something to keep in mind. Okay.
When you look at Neil’s corporate structure, I mean, it is darn dang confusing. Okay, there’s so many things, different subsidiaries, and it’s like, what owns what and what business is actually doing this part of the business versus this part of the business?
So there’s no doubt the corporate structure is complicated, wouldn’t you no doubt about okay. And just keep in mind, like you don’t have the same shareholder rights and legal options as an if you’re an investor in American company, okay.
Like just factually, you don’t have the same shareholder rights, you don’t have the same legal options. Okay? if anything ever goes wrong with the Chinese stock, no one’s coming to save you. Okay? Whether it’s a fraud situation, it’s sketchy stuff that happens, like no one’s coming to save you is a Chinese company, like, no one’s going to be able to do anything, okay.
It was a lawyer going to do trying to get good luck to an American lawyer trying to come after a Chinese Corporation that’s, you know, registered out of the Cayman Islands. Good luck, either. You could be the best lawyers in the world.
Okay. And I know some dang good ones. And I can tell you, you know, you’re not getting anything. Okay. So that’s just something to keep in mind. It’s not the same. Okay? Now, that doesn’t mean you can’t own Chinese stocks,
whether it be NIO stock or other Chinese stocks in general, you just have to watch your risk exposure in these sorts of stocks in case something goes wrong, because like I said, the shareholder rights, if you speak to a lawyer on this, your legal rights are not the same. Okay?
They’re just factually not the same as with, you know, you’re an American buying into an American Corporation, like Apple or Google or something like that.
Okay. And so you just have to watch your risk exposure when it comes to sort of these stocks. Okay, know, my opinion around NIO stock, is it a buy? is a stock a hold right now? Is this like a wait and see?
Okay, so first off, if you’ve been holding this stock, you’ve probably got big and congratulations on that, first and foremost, okay. And so why sell the stock, like, like, literally, why sell the stock just because it’s gone up a lot, a lot of stocks go up a lot. I mean, they go up a lot more, you know, it can go up a lot more.
And so, to me, doesn’t make sense to sell the stock have to pay a fortune in taxes, because a lot of people are up huge in the stock, and then double, triple five x 10. x or money, and you have to pay all those taxes. And then you have this issue of like, where do you put the money? You probably don’t want to keep it all in cash, right? Because cash is, you know, almost consistently getting devalued over time. And so it’s like, oh, where do I put this money? Now?
Do you have a stock to put that money in that you feel is better than NIO, if you do fair play. But at the end of the day, like if you’ve gone through the risk, if you understand the shareholder rights or lacquer rates, and you believe in this company long term, like why sell it, like, like, truly why sell it, if you’re already been holding it, you’re up huge, the company supposedly has a new car coming out in 2022, that has over 600 mile range, which would be massive for this company. And so that’s kind of my opinion, there.
Okay. Now, on the flip side, if you’re thinking about buying this company, okay, in my opinion, is kind of like, let’s see what happens with the 600 mile range car came, I would love to see from independent sources, like, you know, drive this car and actually confirm it to be a 600 mile range or even close to that.
Even if it was 555 25 that would still be extremely impressive, but you kind of got to see this in the real world first, okay, you got to see these cars tested in this to actually happen before you can go, you know, fully, you know, buy into this vision of oh my gosh, because I can tell you, like I said it’s a game changer. This company has cars with 500 or 600 mile range.
It’s a game changer for Neil. That means they’re they’re so far ahead of so many different companies out there, okay, but you kind of gotta wait and see if that can be confirmed by an independent source, okay, in at the end of the day, like NIO deserves respect, the NIO evolution has been impressive. It went from a dream to a super speculative stock they went public way too early, like when this company was not in the financial position at all to go public.
And it was just you know, insanely speculative when it went public at 13 Okay, and then it went to like spec range where it was actually old, the numbers are actually looking pretty decent and it looks like a possibility and now this is becoming like a respected growth company especially if they do over $5 billion in top line in 2021.
Like you You just have to give this company respect like no doubt about it. It’s been extremely impressive so hope you guys enjoyed this video as always, this was a beast to put together here if you don’t mind smash the thumbs up button please don’t leave without doing it helps the YouTube channel now massively helped me get another multivitamin man because I need one and we need as much smashing as possible.
You want joint stock up it’s absolutely free to do so. Like I said we just started Nio chat in there. So if you want to talk about that stock in there, feel free and we got a you know a ton of other stocks in there. Thank you for watching and have a great day.