Toronto-based Canada Nickel Co. Wants Tesla’s Giant Contract

Tesla CEO Elon Musk during the Q2 earnings call promised to give a gigantic contract to any company that can mine nickel efficiently in a way that is friendly to the environment.

Nickel, cobalt, and aluminum are three components that Tesla’s primary battery technology is based on. Since Tesla wants to produce cheaper, lighter, and super long-range batteries that can power Tesla vehicles more than 400 miles on a single charge, Nickel is very important for Tesla. Tesla is also clearly moving away from non-environmentally friendly miners, and components.

Batteries made with Nickel are energy-dense, which makes them smaller, lighter, and makes any vehicle they power driver longer on a single charge.

According to Bloomberg, a tiny Canadian company is taking Elon Musk up on his offer and bets it can get the job done carbon-free.

Chunk of Nickel

The battery is the most important component of an electric vehicle, just like OIL is super important to ICE cars. Tesla is mostly facing battery shortages, as demand is never the problem but supply.

In May 2019, Tesla Inc warned that there will global shortages of nickel, copper, and other electric-vehicle battery minerals down the road due to under-investment in the mining sector. According to IEA reports, Demand for electric vehicles is forecast to grow astronomically through the 2020s, with developments in battery capacity set to further the demand for nickel, making nickel segment the fastest-growing market for miners.

“The electric vehicle chain and the broader market, in general, is crying out for a zero-carbon product,” Canada Nickel CEO Mark Selby. The company said it wants to build a facility that will process zero-carbon nickel.

Nickel is a chemical element with the symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel belongs to the transition metals and is hard and ductile. more >>> Wikipedia

As mining companies go under increased scrutiny to employ environmentally-friendly practices, Tesla CEO faces tough challenges to hand out gigantic contracts to any company that meets his environmentally friendly mining requirement.

Is It Safe To Invest In Tesla Now?

Two days ago, Tesla smashed Q2 earnings estimates by Wall Street analysts by posting surprise GAAP earnings per share of 50 cents, sending the stock up about 6% in aftermarket trading.

Yesterday, Piper Sandler analyst Alexander Potter raised the firm’s price target on Tesla to $2,400 from $2,322 and reiterates an Overweight rating on the shares.

According to Thefly: The analyst stills think Tesla “deserves ‘must own’ status” following last night’s Q2 results. While true that the company benefited from a high amount of credit-related revenue in the quarter and S&P 500 Index eligibility likely wouldn’t have been possible without that revenue, it is “undeniably impressive” that the company may still exceed 500,000 deliveries in 2020, Potter tells investors in a research note. The analyst says that with market share “inflecting “and self-driving roll-outs on the horizon, he “can’t envision” selling Tesla now.

Is it still safe to join the investors that bought way below $1000, by buying at this relatively short-term high price level?. The answer IMO is YES!.

Tesla CyberTruck

Should in case you missed this breaking news, Moody has upgraded Tesla’s ratings including CFR to B2 and senior unsecured to B3; suggesting Tesla’s financial outlook is stable.

Moody’s upgrades Tesla’s ratings

According to SEC, Moody’s ratings provide predictive opinions on one characteristic of a corporate entity’s financial enterprise – its likelihood to repay debt in a timely manner. … It is crucial that our ratings be reliable in their aggregate probability assessments of credit risk.

So if your question is still about the safety of your investment, in relation to Tesla’s financial stance, I believe if Moody’s is positive about Tesla’s financial outlook, you can safely be positive as well.

Let me remind you that Tesla is growing massively time over time. Tesla is currently building a new factory in Europe, and according to the CEO Elon Musk, the made in Berlin Model Y will be revolutionary as it will be almost completely built differently than the Made in China/U.S.A Model Y.

Tesla Giga Berlin 2020

Also, Tesla builds new factories with less amount of money and much faster. “Better factory for less money,” says Elon Musk during the Q2 calls. Every new factory adds value to the product.

Moody’s Investors Service (“Moody’s”) upgraded the ratings of Tesla, Inc., including the Corporate Family Rating to B2 from B3, and senior unsecured rating to B3 from Caa1, and the speculative grade liquidity rating to SGL-2 from SGL-3. The outlook is stable.

According to Moody’s, The upgrade reflects Tesla’s sustainable position in the auto industry as a specialized producer of pure battery electric vehicles (BEVs). However, preserving this strong position in BEVs in the face of emerging competitive challenges will depend on Tesla’s progress around manufacturing efficiency and product development to achieve even broader customer acceptance at an affordable price.

“Moreover, Tesla’s expansion prospects benefit from regulatory pressures on the auto industry to reduce emissions so Tesla’s advanced position in BEVs is an important factor at the higher rating. At the same time, the weak governance at Tesla also constrains the rating.” – Moody’s added.

Tesla is clearly putting in much more energy in the machines that build the machines. Tesla CEO Elon Musk has emphasized times without number how much Tesla factories are revolutionary. He is always on the lookout for smart people to work for Tesla.

  • …. Corporate Family Rating, Upgraded to B2 from B3
  • …. Probability of Default Rating, Upgraded to B2-PD from B3-PD
  • …. Speculative Grade Liquidity Rating, Upgraded to SGL-2 from SGL-3
  • ….Senior Unsecured Regular Bond/Debenture, Upgraded to B3 (LGD4) from Caa1 (LGD4)
  • Outlook Actions: ..Issuer: Tesla, Inc.
  • ….Outlook, Remains Stable

Tesla was down yesterday almost 5% and seems to be down about 4% at the moment in Pre-Market. This is surely a discounted price compared to where the Stock was trading yesterday when the market opened.

S&P 500 index falls 40 points: worst day since June as the surge in unemployment claims, coronavirus cases send Apple, Tesla, Microsoft Stocks down sharply. The broad market is presently down, Apple, Microsoft, Netflix, among others were also down yesterday about 4% each, and they are all down in Pre-Market trading as well. According to experts, the entire market is down due to the bad unemployment numbers posted yesterday.

If you have any questions, feel free to use the comment section.

First Photo Of A BYD Han EV Crash

Just a few days after the BYD Han mid-to-large luxury sedan electric vehicle goes on sale in China, a new owner crashed his!.

This is the first time you will see a BYD Han crash photo. The owner seems to be safe and didn’t sustain any serious injury, judging from the car involved.

This photo was shared by a friend on Twitter that goes by the handle “Ray4Tesla”, a Tesla enthusiast.

According to Ray, the BYD Han owner only want to take the newly purchased vehicle out for a spin, but sadly crashed it. It looks like its the extended-range variant of the premium model which is priced at 255,800 RM. It took BYD ten years to get this beautifully looking car into the hands of customers…. and could be the model that allows BYD to break through to Europe and the U.S. if it attracts enough EV market share. A market dominated by Tesla.

With its 77-kilowatt-hour or 65-kWh battery packs, the Han can go 376 or 314 miles on the NEDC standard, according to the company.

We will be covering BYD related news as time goes on. ;).

Tomorrow Is The Most Important Day For Tesla Investors In 2020

Tomorrow is the judgment day guys. Will Tesla smash Q2 earnings and take investors into the amazing world of the S&P 500? or will it pull the break on the insane rally that started late 2019?.

Tesla is currently up almost 3% pre-market, trading around $1690.

Electric vehicle giant Tesla Inc! is set to report second-quarter earnings tomorrow after market closes. This guys, is like American Super Bowl 2020 as every analyst on earth will be watching super close.

90% of Analysts have been playing catch-up as the stock has blown past their price targets on the heels of better than expected vehicle deliveries, and speculation of inclusion in the S&P 500 if it reports a profit for its latest quarter.

“Why we’ve been dragging our feet about the price target is really about the earnings power, and that at the end of the day we think is driven by the gross margins,” said Oppenheimer analyst Colin Rusch, who has a ridiculous price target of just $968, while Tesla is currently trading almost double of that target.

The Nio vs Tesla video.

The Most Important Thing To Watch Tomorrow

  1. GUIDANCE: The full-year outlook is to be watched closely. Tesla is yet to update the full-year guidance after smashing Q2 deliveries by delivering 90,650, instead of the 72,000 expected by wall-street analysts. Before the Coronavirus pandemic, Tesla promised investors to deliver about 500,000 vehicles in 2020. Whether the pandemic has affected that guidance to deliver 500,000 vehicles this year or not, is left to be seen tomorrow.
  2. MODEL-Y: Also, Model Y’s price was reduced by $3000. If that price reduction increased or affected the sales of the vehicle that Tesla expects to take them to the next level or not is left to be seen tomorrow.
  3. CHINA: Chinese EV demand has been insane. China is not the frontline in the EV war against ICE cars. Analysts expect Tesla to deliver about 150,000 vehicles in China this year. The Coronavirus pandemic has not affected Tesla negatively in China, even though its factory was closed for some weeks while China was the hot zone earlier this year. Tesla’s Model 3 has outsold other EVs in China and all over the world, and it doesn’t seem to be slowing down. According to China’s Passenger Car Association (CPCA), Tesla sold 14,954 Model 3 vehicles in June, up from 11,095 units in May and 3,635 units in April. Insane numbers right?.
  4. CASH AT HAND: Free Cash Flow is something analysts will be looking super closely at as well. This shouldn’t be a problem for Tesla, as Tesla is now the king of cars. Tesla is the most valuable vehicle maker in the world and now sits on a market cap of about $304.735B. Some are arguing that Tesla should use this opportunity to raise more money, as Tesla can literally knock on the door of any bank in the world can walk out with a huge pile of cash. Tesla is expanding aggressively and surely free cash flow is very important. There is nothing like too much money. According to CFRA analyst Garrett Nelson, “Tesla shares have gotten ahead of underlying fundamentals and do not appropriately reflect various risks surrounding the story, including the fact TSLA is entering a major spending cycle with the construction of Gigafactories 4 and 5.” factory projects will also “act as a significant drag on free cash flow over the next several quarters,” adding risk to shares, he wrote.

Are you super pumped as we at Frunkla.com are?. Will Tesla beat estimates and take investors to S&P 500?. Kindly share your opinion with us.

Introducing Triton EV – Could This Later Become The Tesla Of India?

Founded by Himanshu Patel, a man said to have extensive experience in the electronics industry, Triton claims it has built the first EV battery that can drive over 700 miles on a single 2 hours charge.

 CEO of Triton EV – Himanshu B. Patel 

Unlike Tesla that is highly focused on sedans, trucks, and sports cars, Triton EV has focused on SUV for the real ballers a.k.a celebrities.

Triton is not new in the electronics space, as it started as Triton Solar, a company with years of experience whenever it comes to storing electric power. Triton Solar sells energy products such as Pandora Box, Solar Power Storage Battery, Portable Battery, Mega Watts Power Container, Light Towers, Printed Solar, and Printed light.

In an interview with IPO Edge, Mr. Patel explained that the New Jersey-based company continues to expand and is evaluating several states for its first factory. Triton currently builds solar power storage, portable batteries, and light towers and has operations around the world. Looking into the future, Mr. Patel said Triton has already secured quite a few high-profile orders for the SUV. And if a few NBA players want to show them off on Instagram, that’d be just fine with him.

The revolutionary new subsidiary of Triton Solar, Triton-EV, is made up of the premier automotive engineers from IIT Bombay, India’s most prestigious technical university.

Is Triton EV going to be the Tesla Of India?

CEO of Tesla Elon Musk is yet to decide on whether Tesla will build a factory in India or not, and Triton EV CEO is from India.

Before Himanshu Patel found Triton Solar, he served as a trained engineer and founded two additional companies in the electronics sector. A car enthusiast in his own right, it said that it was his passion and vision that led to the founding of the Triton-EV.

Although you can hardly find anything about this gentleman on the internet, if I were him, I would be looking into the Indian market already. As an Indian, I believe the Indian Government and the people of India will dance easily to his tune if he decides to build something portable for the common Indians, something that is completely different from celebrity target huge SUVs.

Pre Order Sold Out!.

It’s presently impossible to pre-order the Triton SUV as the first 100 Founder’s Edition Model H vehicles have already been reserved for pre-order.

Triton-EV is also interested in partnering with equally passionate individuals to open Triton-EV dealerships across the globe, starting right in the U.S.A.

Tesla Direct Sales Approach Is Costing Tesla

According to the interview with IPO Edge, Triton CEO believes Tesla’s direct sales approach is a bad idea. “Why recreate something that is not broken? Selling through dealerships is a proven model that allows us to penetrate global markets at a fraction of the cost. We have already been approached and identified dealerships in 21 countries so far. We are closing agreements with them as we speak. This also gives us increased speed to market and sales.” Patel added

We Have The Best Battery Range And Ability In The Market

Patel believes no one has the battery that they have in terms of power range and the ability to use the battery to plug into your house to power your entire household with the “Power Home Link”(patent pending). “Another thing we will focus on is the motor controller” – Patel

“You can’t call the current EV’s long-distance” – Patel

According to him, all EV makers are lying about having a long-range, as their vehicles cannot reach long distances on one charge. “So far, that has not happened and will not happen until our vehicle hits the market. EVs, right now — no matter how companies market them — are for the short-range. You can’t call the current EV’s long-distance if you have to stop and charge the battery for two hours during your journey. How frustrating is that and more to the point isn’t that complete miss-selling?! ” Patel added.

Pricing

The Model H, Triton’s base model vehicle will be priced at $140,000. It will come with so many in-built benefits with a lighter battery that lasts longer and can power your home if you choose, according to Patel.

The Battery Specs

Patel said their battery weighs 1,800 pounds for 200 kilowatts of energy, which ofc on paper is incredibly lighter than most batteries out there that weigh 2,500 pounds for 100 kilowatts. “In short, we save 700 pounds and are at least two times more powerful than our nearest competitor. This is truly a game-changing scenario. Our unique technology allows us to do this. So far, we have invested close to $100 million in developing our battery technology.” – Patel adds.

So guys, what do you think?. A possible Tesla killer in the SUV section?. The Tesla of India in the making?.

Is NIO Better Than TESLA?

Electric vehicle enthusiasts have 3 things in common, they believe that our automotive future lies in intelligent, electrically powered, and autonomous self-driving vehicles, as stated on the NIO website.

While the CEO of Tesla Inc. Elon Musk is already helping us to transition into a sustainable future through several initiatives, NIO is also taking us into the future continuously.

This blog post is not really a NIO is better or Tesla is a more reliable EV-making company blog post, it’s instead an educational post that takes us back in time and little into the future of electric vehicle manufacturing and autonomous technology.

BREAKING NEWS: NIO made an announcement yesterday via WeChat that its 50,000th vehicle roll off the production line at the JAC-NIO Advanced Manufacturing Center in Hefei, only 783 days after the first one coming out.

There seems to be some kind of pressure between Tesla fans and NIO fans. The later believes NIO is the Tesla of China, which may as well mean Tesla is not needed in China as there is NIO, while the former believes Tesla is already in China and Tesla is without a doubt the Tesla of China.

Do you think NIO is truly the Tesla of China?, and do you think NIO will beat Tesla at its game by doing way better than Tesla in the future in China?. Is NIO better than Tesla?.

Alright!, lets dig deeper into weather NIO is better than Tesla or not, by comparing both company and what makes them stand out among the rest.

NIO has a strong commitment to brighten the world of tomorrow, and so does Tesla. Tesla didn’t just become World Most Valuable Car-Marker overnight if they didn’t mean business.

FOUNDING

Tesla is 9 years older than NIO, which makes Tesla the elephant in the room. Tesla surely has more experience in this space than NIO.

  1. NIO, founded in 2014, is just 6-year-old. NIO believes the automotive industry is on the threshold of profound change and believes it’s not just products and technologies that need to be changed but also the use of these products and how they are experienced by the customer as their owner. NIO wants you to feel good when you own their car.
  2. Tesla, founded in 2003 is now 17-year-old. Tesla was founded by some smart engineers that wanted to prove that electric vehicles can be better than ICE vehicles, by offering more power, acceleration, and driving pleasure. Today Tesla builds not only pure electric vehicles but also unlimited scalable power generation and storage products. “In 2008, Tesla unveiled groundbreaking battery and electric drive technologies with the Roadster. This laid the foundation for the world’s first premium sedan with a purely electric drive – the Model S , which received top marks in every rating category.” – Tesla

Is NIO truly the Tesla of China?.. Let’s keep digging.

LOCATION:

  1. Tesla operates almost 500 stores and galleries around the world and over 80 service centers in 34 countries. Over 200 Tesla stories and centers are outside the United States. 4 years ago, about 96 Tesla dealers and galleries were recorded to be in the U.S. alone. As of last year, Tesla has it’s feet on the ground in 31 countries, which includes: United States, Germany, China, France, Italy, Australia, Canada, United Kingdom, Mexico, Austria, among others. – Tesla
  2. NIO operates in less than 10 countries at the moment. NIO can be found in these 5 countries: U.S.A (San Jose), China (Beijing, Shanghai,..), Germany (Munich), U.K. (London). – NIO

FACTORY:

  1. Tesla currently operates several factories around the world. The popular ones are;
    1. Gigafactory 1: Tesla Giga Nevada is a lithium-ion battery and electric vehicle subassembly factory near Reno, Nevada. The facility is owned and operated by Tesla, Inc. to supply the battery packs for its electric vehicles and stationary storage systems.
    2. Gigafactory 2: Tesla Giga New York is a photovoltaic cell factory leased by Tesla subsidiary SolarCity in Buffalo, New York. The factory, owned by the State of New York, was built on brownfield land remediated from a former steel mill. Construction of the factory started in 2014 and was completed in 2016–17. Wikipedia
    3. Gigafactory 3: Tesla Giga Shanghai is a factory in Shanghai, China operated by Tesla, Inc. The facility is currently producing final assemblies of the Tesla Model 3 and will produce Tesla Model Y, with Y deliveries slated to begin in January 2021.
    4. Tesla Fremont, California: Comprises 5.3 million square feet of manufacturing and office space on 370 acres of land. By the end of this year, Tesla plans to have 500,000 cars coming out of the factory and to fully automate its manufacturing system to make this happen, having already increased the production rate at the Fremont factory by 400% since its launch.
    5. Gigafactory 4: Berlin, Germany. Under-construction.
  2. NIO formerly known as NextEV signed a $10 billion strategic partnership with JAC Motors in 2016, later that year the Chinese EV-manufacturer NextEV renamed itself to NIO. The company website NextEV.com now reroutes to NIO. NIO currently operates no production factory of their own, they instead run a joint manufacturing plant with JAC Motors.
    • Jianghuai Automobile, likewise known as JAC Motors, is the main investor in the existing joint venture plant in Hefei that is Nio’s main production base.
    • NIO, which is also backed by Tencent Holdings, cut thousands of jobs and dropped plans to construct its own manufacturing facility in Shanghai last year because of mounting losses.

Charging vs Battery Swapping

Tesla uses direct plugin battery charging technology, while NIO uses battery swap stations. NIO swap technology is something some investors are worried won’t be around in the next 5 years, perhaps that is why NIO is aggressively building high-speed charging stations.

NIO Battery Swapping Station
  1. Tesla has over 15000 charging stations throughout the world. A tremendous jump from the 2016 recorded number of 3,100 charging stations according to Thinknum.
  2. NIO has over 130 battery swap stations and is also building out a network of high-speed “superchargers”. NIO is one of the EV-Makers out there utilizing the battery swap technology effectively. In May 2018, NIO opened its first battery swap station in the Nanshan District of Shenzhen, Guangdong, China, dubbed the “Power Swap Station”. Only batteries for ES8 vehicles would be possible from this station back then. As of today, NIO battery swapping takes less than 6 minutes to be completed.
    • Another notable thing about NIO battery swapping is that customers that have for example the 70 kWh pack can swap it for another 70 kWh pack for free but if they want an 84 kWh pack, for a long trip, for instance, they can rent it for $10 per day. I’m sure the 100 kWh pack will be available also, but the rental fee has not yet been announced.  More about a first-hand experience can be found on Insideevs.
    • All NIO future premium models that come with swappable batteries are still eligible under the new Chinese EV subsidy policy.

Autonomous Self-Driving Technology

NIO Nomi.
  1. While Tesla vehicles are not considered fully autonomous yet, or Level 5, they are equipped with a super-advanced driver assistance system than most other vehicles on the road today. Tesla Hardware 2 that gives Tesla vehicles the power to self-drive, includes about 8 surround cameras, about 12 ultrasonic sensors, in addition to forward-facing radar with enhanced processing capabilities. According to Tesla during 2019 Q3, autopilot is near 9x times safer than average human driving.
    • Last week Tesla CEO Elon Musk in a previously recorded video presented at World Artificial Intelligence Conference in Shanghai, China reiterated that Tesla is super close to developing fully autonomous vehicles, capable of self-driving with no human behind the wheel.
    • Tesla develops and deploys autonomy at scale. According to their website, they believe that an approach based on advanced AI for vision and planning, supported by efficient use of inference hardware is the only way to achieve a general solution to full self-driving.
  2. NIO has an AI known as Nomi in every one of their cars. It’s described as the world’s first in-vehicle artificial intelligence on their website. The coolest thing about this Nomi is that whenever you open the door to your car, Nomi says hello to you, turns toward you, and blinks at you with good humor.
    • “We used our intuition,” said AI specialist Tao Liang, Nio’s Engineering Director for Machine Learning. “We created different kinds of nodding, different motion curves, and asked our customers to tell us which ones seemed most natural.” In other words, an overly mechanical type of movement would have been less organic and friendly. “We believe that Nomi is enhancing the emotional bond with users,” said Liang. “So, we’re sticking with it for all the future vehicles.”

Market Cap.

Now lets talk about these two big boys’ market cap.

Tesla is currently the most valuable vehicle maker in the world, with a current market cap of $278.368 billion, while NIO has a market cap of $13.136 billion.

Last week, NIO Stock fell over 24% after Goldman Sachs analyst Fei Fang downgraded shares of NIO from BUY to SELL while reiterating a $7.00 price target. 

Tesla Stock closed on Friday at $1500, while NIO closed at $11.09. Some analysts believe NIO is relatively undervalued due to its Made-In-China by China idea. They believe NIO has an upper-hand than Tesla in China because NIO is a 100% Chinese company, backed by the Chinese government with billions of dollars and an advantageous subsidy.

According to Fang, the NIO share price reflects ‘over-optimism’. NIO share tumbled almost 20% on Friday alone following the analyst’s downgrade. Are you an NIO buyer at the price level?

DELIVERY

  • NIO delivered 10,331 electric SUVs in Q2
  • Tesla delivered 90,650 vehicles in Q2

Tesla is set to report Q2 earnings after market closes on the 22nd of July, in 3 days’ time. This is a huge date for both companies, as whatever affects Tesla, will predict what could possibly affect NIO come next month.

Do you think Tesla will smash estimates like always?. Will Tesla finally make it to S&P 500?. Kindly share your opinion with us in the comment section.

Meanwhile, check out this video about NIO last week’ drop.

This Is Why Next Week Is Very Important For Tesla Investors

“Tesla’s earnings are due out on Wednesday, July 22 after the market closes. It will be must-see TV for Wall Street denizens.” – barrons

Analysts that have been propping up their price target on the electric car-making giant for weeks, and those that have been betting strongly that Tesla doesn’t deserve the massive price hike, will be judged next week Wednesday accordingly, once Tesla reports earnings next week Wednesday, July 22 after market closes.

Yesterday, Credit Suisse analyst Dan Levy raised his Tesla price target to $1,400, or twice the $700 target he’d given previously, on the heels of a monster rally that sent shares as high as $1,794.99 on July 13.

According to Levy, Tesla stock is priced for perfection, and any material hiccup could drive a correction.

“Tesla is now the world’s most valuable automaker even though it will only sell ~450-500k units this year (<1% global volume,” Levy said. “To justify the current stock price, we believe one must assume that by 2025 Tesla will set 2.2mn units (making it as large as German luxury brands, while trading at an elevated 30x+ PE [price/earnings] multiple.”

Levy’s new price target of $1,400 on shares of Tesla is well above the $881 average price target on the stock among more than 30 analysts on Wall Street, according to Bloomberg data.

Just 3 days ago, Piper Sandler analyst, Alexander Potter, raised his Tesla price target to $2322 because of the “faster-than-expected share gains” and big opportunities in software.

“While deliveries are a key driver of our increased near-term estimates, software is the biggest driver of our increased DCF-based price target,” – Potter added.

Zacks Consensus Estimate

According to Zacks consensus estimate, Tesla is expected to post quarterly loss of $0.63 per share in its upcoming report, which represents a year-over-year change of +43.8%.

Revenues are expected to be $4.98 billion, down 21.6% from the year-ago quarter.

Conclusion:

We all gonna need a huge popcorn box, come next week Wednesday!. Are you a buyer or a seller at this $1500 price level?.

NIO Down 18%, Great Time To Buy?

The Tesla of China took a hard beaten on Friday after an analyst went from Neutral to Bearish all of a sudden.

Shares of Chinese electric-vehicle maker NIO opened with a gap down on Friday, after a Goldman Sachs analyst urged caution and downgraded the stock in a new note. The stock has since dropped over 17%.

Goldman Sachs’s Fei Fang has a new price target of $7 on the electric car maker. He was neutral since October 2019, but now bearish.

This sudden bearish rate has dropped price of NIO, from yesterday’s close around $12.95, all the way down to around $10.50 at the moment.

IS THIS A GREAT OPPORTUNITY TO BUY NIO?

Retail investors are betting big on the Chinese electric-car maker, most especially those that missed the Tesla Inc! rally.

The analysts on the other hand, is cautiously bearish, as according to him; the long-term investment case rests on structural forces in China’s vast auto market that point to the growth of premium brands and electric-vehicle sales generally, as well as NIO’s specific appeal as “China’s first home-grown high-end passenger-vehicle brand.”

Investors who jumped into Nio shares on a whim a few months ago have made large profits, let’s not forget that this Stock was trading below $3 few months ago.

Another thing is, Goldman Sachs & Co. LLc owns over 10 million shares of NIO. Perhaps they are trying to push the price lower, so as to add to their bag?.

“NIO delivered 3,740 vehicles in June 2020, representing a strong 179.1% growth year-over-year. The deliveries consisted of 2,476 ES6s, the Company’s 5-seater high-performance premium smart electric SUV, and 1,264 ES8s, the Company’s 7-seater high-performance premium smart electric SUV, and its 6-seater variant. NIO delivered 10,331 vehicles in the second quarter of 2020, representing an increase of 190.8% year-over-year and an increase of 169.2% quarter-over-quarter. As of June 30, 2020, cumulative deliveries of the ES8 and the ES6 reached 46,082 vehicles, of which 14,169 were delivered in 2020.” – NIO

Are you a NIO buyer at these levels?, kindly share your opinion with us in the comment section.

Should You Buy Nio Stock Now?

NIO has been called The Tesla Killer for years, ever since the Chinese automobile manufacturer, headquartered in Shanghai, close to Tesla Giga Shanghai, launched its NIO EP9 in 2016.

NIO EP9 …

The NIO EP9 is an electric-powered, two-seat sports car. Six EP9s have been sold to NIO investors for £2,500,000 each, and NIO announced that ten additional EP9s will be sold to the general public.

Following the massive capital injection from NIO’s early investor Tencent Holdings and the bailout from Chinese authorities, we believe NIO has enough ammo to keep investors hyped and alive, NIO sales is also rising, and there is surely enough money in the bank.

Nio presently has 3 models in production, the EP9, ES6, and ES8

ES8 NIO.

The NIO ES8 is an all-electric, 7-seater full-sized Sport Utility Vehicle manufactured by NIO. The ES8 was put into production in June 2018 for the Chinese market.

SHOULD YOU BUY NIO STOCK?

NIO’s share-price surge began in earnest after it reported its second-quarter sales results early in July. The company said that its vehicle sales in the quarter had nearly tripled from the year-ago period (up 191% to 10,331, to be precise), as the coronavirus pandemic receded and NIO was able to take advantage of the expanded sales infrastructure it put in place last year. – fool.com

The stock has been up over 250% past 3 months. NIO is taking advantage of the curent EV wave that is pushing all EV related Stocks higher. Further, China’s intense push for EV vehicles is a major booster for NIO.

According to ZACK, while the company has secured funding and managed to stay afloat, its balance sheet is quite weak. Reverse leverage and high debt of the firm in comparison with cash and cash equivalents play spoilsport. The firm should ensure prudent utilization of funds via focusing on expansion strategies and the launch of vehicles to boost long-term prospects.

NIO is expected to report its Q2 earnings result sometime in the middle of next month. Investors are surely hyped and pumped and hoping for a positive report.

Feel free to use the comment section to share your opinion with us. Are you a NIO stock buyer?.

Porsche Taycan Declared As World’s Most Innovative Car By German Scientists

A panel of independent scientists from The Center of Automotive Management (CAM) at the University of Applied Sciences in Bergisch Gladbach, Germany, just declared Porche Taycan as world’s most innovative car of the year 2020.

Thanks to a total of 27 new developments, the Porsche Taycan is the most important innovation driver in the global automotive market. 13 of these, or almost half, are world firsts. These are the conclusions of the new AutomotiveINNOVATIONS Report published by the Center of Automotive Management (CAM).

This comes after the group studied over 250 different cars, and identified the two-speed transmission brought in by Porche Tycan as one of the roughly 27 new developments. The group also identified about 13 as world-firsts innovation.

Innovations in the electric Porsche recognised by the scientists at CAM include its 800-volt architecture, two-speed transmission on the rear axle, high recuperative power of up to 265 kW and best cd value in the segment (from 0.22).

“We are delighted that our first all-electric sports car has so quickly achieved a place on the top step of the podium in the AutomotiveINNOVATIONS awards. This is fantastic confirmation of the innovative strength of our company and the pioneering spirit that can be found at Porsche,” says Oliver Blume, Chairman of the Executive Board of Porsche AG. “We have developed a new car with a new team and have built a completely new carbon-neutral factory. Technical innovations such as our 800-volt architecture, recognised here by the award, permit short charging times. The two-speed transmission on the rear axle guarantees a unique driving experience. Both order book and customer feedback are very positive.”