After a few weeks of pulse-checks on the major players in the electric vehicle space, my co-host Aaron Davis and I revisit Nio (NYSE:NIO).
COVID lockdowns and supply chain shakeups in China have been weighing on the company. But now things seem to be easing. Shanghai has moved to end its two-month lockdown, giving hope that any new lockdowns in the future will be shorter and much less intense.
The Chinese economy can’t withstand more dramatic slowdowns. And citizen pushback against strict lockdowns is getting stronger. This means that COVID protocols won’t be a deterrent to production. And EV stocks are catching a bid on that — Nio stock included.
The company already has very strong demand and has now successfully expanded into Europe. And we’re hearing murmurs that Nio is trying to break into the U.S. market. If supply chains continue to normalize, Nio’s sales could see tremendous growth. And Nio stock will soar.
Bigger picture, China’s recent lockdown and supply chain strife is almost the last domino to fall, so to speak. Over the past year, global supply chain issues have been easing. And in some cases, things seem to be back to pre-pandemic levels. If supply chains are running smoothly, that means there is greater supply. That’s a strong driver of deflation. And as this continues to improve, inflation will become less and less of a problem.
Further, something incredible is happening in the markets right now… something I haven’t seen since COVID first shook the world. And that’s insider buying! Transactions among insiders has continued at unprecedented levels. Spikes like this have historically coincided with a near-term bottom right after a major selloff. After all, these are the folks who know the ins and outs of their businesses intimately — more than any outsider could ever know.
Fundamentally speaking, if they’re buying, you want to be buying too. This trend is only getting bigger, and I’m insanely bullish.
Catch our full conversation at Hypergrowth Investing on YouTube!