If you are wondering whether NIO at around US$4.70 is a bargain or a value trap, you are not alone. The answer depends on how you think about what the market is really pricing in.
The stock is up 1.3% over the last 7 days, but shows a 7.8% decline over 30 days and is down 8.6% year to date, even with an 8.8% gain over the last year and much larger declines of 58.0% over 3 years and 91.7% over 5 years.
These mixed returns sit against a backdrop of ongoing attention on NIO as a US listed, China based EV maker, including market reactions to sector sentiment, competition and investor appetite for higher risk growth stories. While the specific drivers of each short term move are varied, the overall pattern has kept valuation questions front…
