Nio's Business Bounces Back, but There's a Better Way to Play Chinese EV Stocks

Earlier this year, (NYSE: NIO) shares dropped to multi-year lows as the Chinese electric vehicle (EV) maker struggled to regain momentum after it worked to recover from various production and delivery headwinds.

Yet, in the past month its American depositary shares have soared by about 30%. The company seemed to justify that optimism when it reported monthly June delivery data. It showed a sharp rebound in deliveries following a string of four consecutive monthly declines.

But valuation and profitability should be part of the equation for investors, and right now there are better ways to invest in the largest EV market in the world. Let's dive in.

Continue reading


Source Fool.com