Few companies have endured a sharper decline in their share prices since the pandemic than NIO (NYSE:NIO). The electric vehicle (EV) manufacturer has failed to deliver on great promises, and it’s arguable that its proprietary battery-swapping technology is no longer as useful as it once was, given the advances in charging technology. I’m no longer bullish on NIO stock, although I wouldn’t be surprised to see near-term volatility as investors digest production data and news.
Not Delivering on Promises
Around two years ago, I argued that NIO, considering its growth trajectory and valuation metrics, was among the best buys in the sector. The firm had been on something of a Tesla-esque (NASDAQ:TSLA) growth cycle. However, it underdelivered, partially due to supply chain constraints as China imposed prolonged COVID-19 restrictions, and it is continuing to do so.
In 2023, NIO delivered 160,038 vehicles, up 30.66%…
