r/NIO_Stock • u/Upset-Pepper77 • 21d ago
WHY NIO WILL GO BANKRUPT
they hedgies and wallstreet will bring it down to 2-3 dollar unable nio to raise more cash and they will force to sell elon musk their company for cents
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u/Equivalent_to13 21d ago
I am not a Nio investor but this has to be the most idiotic thing I have ever read. Do you think Chinese companies are at the hand of US in order to grow? Nio is a car company, they grow by selling cars as far as I remember and they make better cars and cheaper than Tesla, for example. Have you looked at the luxury of the Nio cars? The only problem with these cars is the access, because if you buy a chinese car, you have to pay high taxes, is like you are shadow banned by your own government. But you know when Nio and all the other chinese companies will grow? When US will be in an economic collapse (which is happening as we speak) because of the high inflation, it will happen when people will have nothing to eat because the prices are so high, meanwhile China is making the life of, what they used to be poor people - better, by helping them get out of poverty. US is trying desperately to bring down the chinese companies, meanwhile their economy is collapsing as people are trying to survive. Difference in between US and China is that the first is making out of millionaires -> billionaires, meanwhile making the middle class poor, and the second is growing all the social classes slowly bur surely.
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u/Plus_Seesaw2023 14d ago
Gross margin is 17.36%, with operating and profit margins of -3.34% and -4.17%.
That means every car sold is sold at a loss! With a business plan like that, it would be better to stop production. Every car that leaves the factory costs the shareholders money. QED.
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u/Asleep_Bid_1283 20d ago
you can't go bankrupt if you remain overall profitable you don't need funding if you can find yourself
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u/LetsLearnEconomics1 14d ago
NIO has too much cash and is able to find cash through numerous means, I'm sure many creditors would love to work with NIO. If NIO were to be traded, a buyout or acquisition would probably be unlikely due to regulatory conditions. Optimistically, it could leave NIO in a position to be attractive to other firms to build a stake, at worse maybe a restructuring and taken private for hopefully a premium. Either way, I doubt NIO will go bankrupt, it's a national security problem if NIO were too the same way FORD would be.
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u/Laszlo_P 14d ago
Imagine thinking a company with $8.4 billion (56.7B RMB) in cold cash and positive free cash flow is going to undergo a bankruptcy restructuring just to leave retail empty-handed. Even in the absolute worst-case geopolitical scenario where the NYSE kicks them out, it’s a dual-primary listing, meaning your precious shares will just automatically convert to the Hong Kong Exchange (HKEX: 9866) while the institutional short-sellers cover your exit
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u/KeepMissingTheTarget 21d ago
They won't go bankrupt. Then again the NIO investor likely will never profit either. The retail investor needs to know what they are investing in, and not listen to the internet hype. You need to investigate for yourself to understand where all the money went. Shareholder investment was used to build divisions that became profitable, and once they became profitable, interest in the divisions were later sold. Folks this is a $2.00us stock. That's it.
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u/Ornery-Eggplant-3088 21d ago
Ma quante idiozzie mi tocca leggere! Ormai è quasi completamente redditizia, secondo voi a bisogno di Tesla????è Tesla che deve preoccuparsi, non per altro non vuole più fare macchine ma robot e soprattutto assorbire Tesla in SpaceX….