Will Nio Recover in 2022?
For electric vehicle (EV) investors, China is an attractive market. Global EV sales are estimated to be roughly 6 million units for 2021. Of these, China alone is expected to account for around 2.9 million units.
Yet, investors remain skeptical about investing in Chinese stocks. Considering some key developments in China in 2021, such skepticism looks reasonable. However, assuming you've already considered that risk in the context of your portfolio, let's discuss whether it is a good idea to buy Nio (NYSE: NIO) stock right now.
As a leading market for EVs, China obviously attracts top global players. Nio competes with established players, including BYD and Tesla, as well as with newer entrants, including Li Auto and XPeng. Further, Nio also faces competition from legacy automakers, including Volkswagen and General Motors, which are looking to capture a portion of the fast-growing Chinese EV market.
Source Fool.com
