JIANG_LIM
08-25
$NIO Inc.(NIO)$  

 • Overbought setup: RSI near 80 is unsustainable. Even if earnings look “okay,” stocks often sell off after big pre-earnings runs.

• Reality check: NIO is still burning cash. Losses last quarter were almost RMB 6.8B (~US$930M). A single “less bad” quarter won’t erase that.

• Peer valuation: It’s trading like it’s already profitable, so any disappointment can hit harder.


I'm shorting it now~ 

XPEV, NIO & LI Earnings Out: Which One Is the Best Play?
NIO is still posting losses, with a Q3 net loss of ¥3.48 billion, though this marks a narrowing of over 30%. At the same time, the company’s overall gross margin reached 13.9%, the highest in three years, and both operating cash flow and free cash flow turned positive. This time, NIO not only expressed confidence in achieving profitability in Q4 but also set more ambitious targets, aiming for full-year profitability next year. Li Auto’s Q3 revenue fell 36% year over year, with a net loss of 624 million yuan. Its Q4 guidance came in nearly 30% below expectations.
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Comments

  • Meoooow
    08-25
    Meoooow
    Nio is way too undervalued if it's profitable.
    Stocks are always forward-looking.
    If management keeps its promises on spending, then it's the right direction towards profitability. Though I prefer more spending cut to ensure profitability.
    Chart is just a guide only so it can always be overwritten.

    🥒 🥒 🥒

  • Meoooow
    08-25
    Meoooow
    Quite safe if you shorted above $6.90
    Show your trade and you will be remembered.

    🥥 🥥 🥥

  • Meoooow
    08-25
    Meoooow
    Good chance price drop on opening.
    Remember to cover your tracks fast.
    Those who have taken their profits today can buy cheaper.  $6 looks good.
    Expect registration numbers to be flat.

    🍌 🍌 🍌

  • Meoooow
    08-25
    Meoooow
    Expecting many ppl buying on dip for year end's surprise with extra cash. Downside may be limited.
    Don't think can see $5.50 again for this year.

    🍒 🍒 🍒

  • Meoooow
    08-25
    Meoooow
    Congrats on your shorts.
    Seems like plenty of time to cover back.
    FOMOs assisting in your quest.

    🥕 🥕 🥕

  • fibance
    08-25
    fibance
    Cool. Please share your trade
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