How to Trade NIO to Record Highs on EV Boom

<p><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-nio-stock"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Trade_NIO_Stock.png" data- data- data-alt="Trade NIO Stock" data-height="330" data-width="720"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/Trade_NIO_Stock.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/Trade_NIO_Stock.png"></source></picture></a></p><p>Electric vehicle (EV) stocks have surged in demand this year as the world transitions to greener technologies.  </p><p>With Tesla bursting through the $1,000 per share price level and holding on to its $1 trillion market cap, investors are now looking for the next hot EV stock that could race higher.  </p><p>Enter Chinese EV maker NIO. While this electric vehicle maker only has a market cap of around $60 billion it has attracted the interest of hedge funds around the world.  </p><p>Analysts have turned increasingly bullish on the stock with some calling for record highs in the next 12 months. Learn more, including how to trade it further below.   </p><table border="1">
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<td><b><span>Stock:</span></b></td>
<td><b><span>NIO Inc</span></b></td>
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<td><span><b>Exchange:</b></span></td>
<td>NYSE</td>
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<td><span><b>Symbol for Invest.MT5 Account:</b></span></td>
<td><a href="https://admiralmarkets.com/start-trading/contract-specifications/instrument/nio" target="_blank" rel="noopener"><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span data-ccp-char>NIO</span></span></a></td>
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<td><span><b>Symbol for Trade.MT5 Account:</b></span></td>
<td><a href="https://admiralmarkets.com/start-trading/contract-specifications/instrument/_nio_us" target="_blank" rel="noreferrer noopener"><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span data-ccp-char>#NIO.US</span></span></a></td>
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<td><span><b>Date of Idea:</b></span></td>
<td>17 November 2021</td>
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<td><span><b>Time Line:</b></span></td>
<td>1 – 3 months</td>
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<td><span><b>Entry Level:</b></span></td>
<td>$45.00</td>
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<td><span><b>Target Level:</b></span></td>
<td>$70.00</td>
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<td><span><b>Stop Loss Level:</b></span></td>
<td>$32.50</td>
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<td><span><b>Position Size for Invest.MT5 Account:</b></span></td>
<td>Max 7%</td>
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<td><span><b>Risk:</b></span></td>
<td>High</td>
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</table><p>* The <a href="https://admiralmarkets.com/start-trading/admiral-invest-stocks-and-etfs" target="_blank" rel="noopener">Invest.MT5</a> account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world. </p><p>* The <a href="https://admiralmarkets.com/start-trading/account-types" target="_blank" rel="noopener">Trade.MT5</a> account allows you to speculate on the price direction of stocks and shares using CFDs. This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this <a href="https://admiralmarkets.com/education/articles/forex-basics/what-is-cfd-trading-contracts-for-difference-explained" target="_blank" rel="noopener">How to Trade CFDs</a> article.</p><p><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-nio-stock"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/NIO_stock_chart.png" data- data- data-alt="NIO stock chart" data-height="483" data-width="990"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/NIO_stock_chart.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/NIO_stock_chart.png"></source></picture></a></p><p><em>Source: Admirals <a href="https://admiralmarkets.com/start-trading/contract-specifications/instrument/nio" target="_blank" rel="noopener">Contract Specification</a> </em> </p><p>All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a <a href="https://admiralmarkets.com/start-trading/forex-demo" target="_blank" rel="noopener">demo account</a> first to build your knowledge before investing. </p><h2 aria-level="1">Why Trade NIO Stock? </h2><p>There are a variety of reasons why hedge fund activity has increased on NIO stock and why Wallstreet is turning increasingly bullish. Let’s have a look at a few.  </p><h3 aria-level="3">Reason 1: Electric vehicle car sales are set to boom around the world </h3><p>As governments attempt to tackle climate change head-on, many have made pledges to phase out the sales of combustion engine vehicles over the next decade. This means demand for electric vehicles is set to increase exponentially.  </p><p>In fact, by 2030 NIO CEO William Li <a rel="nofollow noopener" href="https://www.cnbc.com/2021/06/15/chinas-top-ev-car-makers-predict-new-energy-vehicles-will-dominate.html" target="_blank">believes</a> electric vehicles will account for 90% of new car sales in China which is currently the largest EV market. Sales have already been growing all around the world with year-on-year growth up by a huge margin.  </p><h3 aria-level="3">Reason 2: NIO’s battery-swapping service has analysts very excited </h3><p>NIO stands out from the rest of the EV stocks as it has a battery-swapping service. While most electric vehicles need to be plugged in to recharge, NIO drivers can simply drive into a battery-swapping station and exchange their depleted battery for a fully charged one in just a few minutes.  </p><p>There are more than 500 battery-swapping stations in China and the government have provided subsidies to build more. One is currently being launched in Norway as well. NIO <a rel="nofollow noopener" href="https://www.caranddriver.com/news/a33670482/nio-swappable-batteries-lease/" target="_blank">says</a> this service makes the cost of an electric car $10,000 cheaper.  </p><h3 aria-level="3">Reason 3: Supply chain constraints are coming to an end </h3><p>NIO’s recent <a rel="nofollow noopener" href="https://www.cnbc.com/2021/11/14/analysts-see-nio-zynga-as-long-term-winners.html" target="_blank">earnings</a> report showed mixed results. While the EV maker beat revenue estimates, the company’s fourth-quarter guidance was lower than expected. This is due to supply chain constraints that have plagued every automaker in the world.  </p><p>However, analysts are pointing to the fact that these constraints are now coming to an end which means NIO has the ability to build more cars. An important factor, considering the company is now moving into new markets such as Norway and the US.  </p><h3 aria-level="3">Reason 4: Hedge fund activity has increased  </h3><p>According to data from TipRanks, hedge funds have increased their holdings in NIO stock by 3.5 million shares over the last quarter. The steady buying from hedge funds is a growing trend in the EV sector and is one to watch for the future.  </p><p><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-nio-stock"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Hedge_Funds_NIO_Stock.png" data- data- data-alt="Hedge Funds NIO Stock" data-height="350" data-width="751"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/Hedge_Funds_NIO_Stock.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/Hedge_Funds_NIO_Stock.png"></source></picture></a></p><p><em>Source: <a rel="nofollow noopener" href="https://www.tipranks.com/stocks/nio/hedge-funds" target="_blank">TipRanks</a>, 17 November 2021 </em></p><h2 aria-level="2">What are Analysts Forecasting for NIO Stock? </h2><p><span>According to analysts polled by </span><span>MarketBeat,</span><span> </span><span>there are currently a higher amount of buy ratings on </span><span>NIO</span><span> stock than sell ratings. The buy ratings have also increased in number over the last month. </span></p><p><span><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-nio-stock"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/NIO_Stock_Analyst_Ratings.png" data- data- data-alt="NIO Stock Analyst Ratings" data-height="366" data-width="944"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/NIO_Stock_Analyst_Ratings.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/NIO_Stock_Analyst_Ratings.png"></source></picture></a></span></p><p><em><span><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span>Source: </span></span><a rel="nofollow noopener" href="https://www.marketbeat.com/stocks/NYSE/NIO/price-target/" target="_blank"><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span data-ccp-char>MarketBeat</span></span></a><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span>,</span><span> </span><span>17</span><span> November 2021</span></span><span data-ccp-props='{"201341983":0,"335559739":160,"335559740":259}'> </span></span></em></p><h2 aria-level="2">An Example Trading Idea for NIO </h2><p>An example trading idea for NIO could be as follows:  </p><ol>
<li data-leveltext="%1." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="1" data-aria-level="1">Buy the stock on a break above $45.00.  </li>
<li data-leveltext="%1." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Target above the record high at $70.    </li>
<li data-leveltext="%1." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="3" data-aria-level="1">Place a protective stop loss at $32.50.   </li>
<li data-leveltext="%1." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="4" data-aria-level="1">Keep your risk small at a maximum of 7% of your total account.   </li>
<li data-leveltext="%1." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="5" data-aria-level="1">Time Line = 1 – 3 months  </li>
<li data-leveltext="%1." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="6" data-aria-level="1">If you buy 10 NIO shares:  
<ul>
<li data-leveltext="%2." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="1" data-aria-level="2">If target is reached = $250 profit.   </li>
<li data-leveltext="%2." data-font="Calibri" data-list aria-setsize="-1" data-aria-posinset="2" data-aria-level="2">If stop loss reached = $125 loss </li>
</ul>
</li>
</ol><p>Risk management is one of the most important aspects of trading successfully. You should always know how much you could potentially lose on a trade.  </p><p>The example figures above have been calculated using the Admirals <a href="https://admiralmarkets.com/start-trading/trading-calculator" target="_blank" rel="noopener">Trading Calculato</a>r which enables you to view what your profit or loss could be based on the numbers you input – a great tool for traders!   </p><h2 aria-level="2">How to Buy NIO Shares in 4 Steps  </h2><p>With Admirals, you can buy shares in US companies <span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span>and ADRs (</span></span><a href="https://admiralmarkets.com/education/articles/shares/american-depositary-receipts" target="_blank" rel="noopener"><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span data-ccp-char>American Depositary Receipts</span></span></a><span lang="EN-GB" xml:lang="EN-GB" data-contrast="none"><span>)</span> </span>like NIO with a low commission of just $0.02 per share and a low minimum commission of just $1.   </p><ol>
<li data-leveltext="%1." data-font="ＭＳ 明朝" data-list aria-setsize="-1" data-aria-posinset="1" data-aria-level="1"><a href="https://admiralmarkets.com/signup" target="_blank" rel="noopener">Open an account</a> with Admirals to access the Trader’s Room.   </li>
<li data-leveltext="%1." data-font="ＭＳ 明朝" data-list aria-setsize="-1" data-aria-posinset="2" data-aria-level="1">Click on Trade on one of your live or demo accounts to open the web platform.   </li>
<li data-leveltext="%1." data-font="ＭＳ 明朝" data-list aria-setsize="-1" data-aria-posinset="3" data-aria-level="1">Search for NIO at the bottom of the Market Watch window and drag the symbol onto the chart.   </li>
<li data-leveltext="%1." data-font="ＭＳ 明朝" data-list aria-setsize="-1" data-aria-posinset="4" data-aria-level="1">Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level.   </li>
</ol><p><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-nio-stock"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/NIO_MT5_Admirals.png" data- data- data-alt="NIO MT5 Admirals" data-height="672" data-width="1440"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/NIO_MT5_Admirals.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/NIO_MT5_Admirals.png"></source></picture></a></p><p><em>Source: <a href="https://admiralmarkets.com/trading-platforms/webtrader" target="_blank" rel="noopener">Admirals MetaTrader 5 Web</a>. Past performance is not a reliable indicator of future results, or future performance. </em></p><p>Click on the banner below to buy NIO stock today! ▼▼▼ </p><p><a href="https://admiralmarkets.com/start-trading/contract-specifications/instrument/nio"><a href="https://admiralmarkets.com/analytics/traders-blog/trading-idea-nio-stock"><picture class="lozad" data-iesrc="https://fxmedia.s3.amazonaws.com/articles/Trade_NIO_Stock_Admirals-1.png" data- data- data-alt="Trade NIO Stock Admirals" data-height="220" data-width="720"><source type="image/webp" media="(min-width: 640px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/720x,webp/fxmedia.s3.amazonaws.com/articles/Trade_NIO_Stock_Admirals-1.png"></source><source type="image/webp" media="(max-width: 639px)" srcset="https://dqvh7oj3vu3ch.cloudfront.net/375x,webp/fxmedia.s3.amazonaws.com/articles/Trade_NIO_Stock_Admirals-1.png"></source></picture></a></a></p><h2 aria-level="2">Do You See NIO Moving Differently?  </h2><p>Remember that all analytics and trading ideas are based on the personal view and experience of the author.  </p><p>If you believe there is a higher chance NIO’s share price will move lower, then you can also trade <a href="https://admiralmarkets.com/education/articles/general-trading/short-selling" target="_blank" rel="noopener">short </a>from a CFD (Contracts for Difference) trading account which Admirals also provide.  </p><p aria-level="3"><b>INFORMATION ABOUT ANALYTICAL MATERIALS:   </b></p><p>The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:   </p><ul>
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