Nio gets USD740million investment

 One may get exited with the news. To me, this is not something to celebrate. Here are my reasons:

1. This will result in further dilution of the shares.

2. Nio has been actively raising capital for the pass couple of years. They listed in both HK and Singapore stock exchange. They should have more than enough cash for them to expand the business for quite sometimes.

3. I mentioned this before and will reiterate, Nio has not been managing their cost effectively. Their business model of building NIO houses are very costly. I don't think they have generated positive business returns.

4. The battery swap and BAAS are new technology and business model. However, they incur high costs to build and need additional batteries allocations to the over one thousand of battery swap stations. They need to make sure the business and financial terms on BAAS will yield positive ROI and benefit the consumers as compared to the conventional charging networks which is widely adopted by all other BEV brands, so as to attract more interest.

Initial Jobless Claim coming up.

Initial Jobless claims to be released today 22nd June 2023. Stock was sideway to slightly down over the pass two days. Momentum was quite strong and positive last week. It did not continue this Monday and Tuesday. I hope reason being market is anticipating the initial jobless claims data. So, I hope the number is favourable to the market. 

#NIO.

 

Nio has gone up 25% over the past 5 trading days. Next resistance level is $10.025. Certainly hope it will break the resistance on Friday.

Cepton (CPTN)

Cepton (CPTN) has gone up over 50% for the pass 5 trading days. Last night posted 28% up. Stocks market seems to be on the upside over the course of the week. Is this the sign indicating market has priced in the weak macro condition and try to stage a come back, or it is just temporary upside follow by a bigger selloff? It is too early to tell.

Nio today announced cutting prices on all of its models. It will also end free battery swapping services to new buyers. More details can be obtained from link: https://cnevpost.com/2023/06/12/nio-william-li-responds-to-price-cuts/

I see this as positive news. I was expecting them to cut prices few months ago in view of overall sluggish EV sales and competitors had been cutting prices as well. This is inevitable. 

Even with the price cut. NIO is still priced as premium vehicles as compare to other Chinese EV company like Xpeng, BYD etc. I hope the amount of price cut will be able to generate more sales to more than offset the lower vehicles margins as the result of the price cut.

So far, market had reacted positively in HK stock exchange. US stock to be opened in about 1 hour time and premarket now is up 4.5%.

Is NIO going to register Q2 YOY drop in vehicles delivery?

Nio delivered 25,059 vehicles in Q2 2022. In 2023, Nio delivered 6658 and 6155 vehicles in April and May respectively. To match 2022 Q2 delivery of 25,059 vehicles, Nio would need to deliver 12,246 vehicles for the month of June 2023. If Nio misses this mark, it will be quite negative blow for the Nio. It would also put the CEO's remark of Nio potential turning profitable by end of 2023 into question.

SunHydrogen Inc. (HYSR) huge movement

SunHydrogen Inc. (HYSR) has gone up over 35% for the pass 5 days, with above average volume. They is no accompanying news I could find. Short term indicators match with movement of the stock. Will see how it pans out going forward. Hopefully, there will be encouraging news on the commercialisation of their technology.