Nio Stock - is Nio safe to invest in

Hello and welcome back to a new video. So

today I want to talk about this Chinese

stock called NIO. You've probably heard of

it already because everyone's talking

about it. It's blowing up on the stock

markets. I'm currently up by about £200 if

I cashed out now. Look at this, this is

insane. I only started buying NIO about a

week ago or a couple days ago, so I didn't

get in very early. I got in kind of late.

I started buying shares when it was about

$34 or $35 per share, and now

it shot up to about $40 $22 per share,

and if I cashed out now, I could easily

make £207. But I'm not going to cash out

now because I think it's going to carry on

going up, and so do a lot of people, and I

want more money. But there's another

Chinese electric car company called XPeng,

and I managed to get in a bit earlier,

and I'm up £346 if I sold now.

I bought my shares around $26 per share.

And now it's at $35 per share. These

electric car companies are just blowing up

right now. It's crazy. You have to get in

now because it's just going to keep going

up and up and up. Everyone's getting

really excited about these Chinese

electric car companies because they think

they're going to be the next Tesla. They

think next year or in 2 years' time,

they're going to be huge. The share values

are going to be in the triple digits. But

you know what they say, if things are too

good to be true, sometimes they're just

not true. And if you do some Googling

about NIO, you might find some things that

might want to stop you from investing more

into NIO. And I don't know if I want to

buy more NIO or XPeng. I mean, it is

pretty tempting when you keep seeing the

stock value going up and up and up and

everyone's getting really excited about

it. You want to jump on board so you're

not missing out. However, there are some

worrying things about NIO if you were

considering buying more of their stock.

Number 1, the shares are overvalued

because everyone's jumping onto the hype

train and buying and buying and buying.

This is making the value go up

artificially. So according to this

article, there are 3 cons of investing in

NIO stock. Number one, the shares are

overvalued. It says NIO stock is up more

than 322% from a year earlier, which is

expensive by traditional valuation

metrics. People are saying that everyone's

too optimistic, overoptimistic about this

stock, which is blowing up, inflating,

ballooning the value of the stock. And

maybe this isn't the true value of the

stock and it's just going to drop once the

bubble bursts, and then I'm going to lose

my £2,000. The second reason why you may

not want to invest in this company right

now is because apparently, according to

this article, it's not profitable. Things

seem to be turning around for NIO, but

it's impossible to overlook the fact that

the company is still not profitable. And

though profitability does seem to be in

its future, it will likely take a while

for the company to get there. So I don't

understand why that's a problem. Just wait

a couple of years and when it starts

making profit, then the share values are

going to blow up even more. The 3rd con is

momentum may not last. A year earlier,

analysts were unsure whether NIO would go

bankrupt or not. It's encouraging to see

the company's growth, but it remains to be

seen whether the company can sustain this

momentum over the long term. And if you

Google, is NIO fraudulent? Are they a

scam? Are they a con? Then some very

worrying articles start popping up. Which

I think after you read them, you will

second think, reconsider investing

more into NIO. So this article says, NIO,

this will end in tears. NIO is a cash

incinerating machine par excellence. The

stock is incredibly liquid and borrow is

readily available, readily available at

2%. So this is actionable for most

investors. I have no idea what that means,

but I'm sure some of you do. I'm not

saying this is another China fraud, but

the conditions clearly exist for it to be

a fraudulent enterprise defrauding

offshore investors to the benefit of

Chinese entrepreneurs. So after reading

this article, I started to get very

worried because you know what Chinese

companies can be like. Can you really

trust them? Now, I'm not claiming that

they are fraudulent. They could be a

perfectly legitimate company. And maybe

these articles are written by the

competitors trying to turn investors away.

But this is making me very worried and I

am considering selling all my shares when

the share rises again. I think today the

shares are going to drop a bit and there's

going to be a bit of pullback, but I'm,

I'm getting very worried about having

nearly £4,000 of my children's inheritance

money locked into these Chinese electric

car vehicles. I'm currently invested in

XPeng, Li Automobiles, and NIO,

and I am up by about nearly $800. But

after reading some of these scary

articles, I'm seriously considering just

taking my money out, taking my profits,

taking my gains and playing it safe.

So I don't really know what to do. Do I

keep pumping more money into NIO and XPeng

and Li Automobiles? Maybe they'll go up

even more by Christmas, or maybe even next

year. Maybe I should hold until next year

and then they'll be even bigger. But what

if it is a fraud? And what if the bubble

pops and everyone realizes that, oh, the

stock value is actually overvalued because

everyone keeps buying into it and there's

this massive hype train and it's not

actually valued this much, it's actually

half the value, and then everyone starts

selling, and then I've put in thousands

and thousands of pounds into it and I'm

gonna lose money. That's what I'm worried

about. I don't want to lose money. What

if, what if all of these YouTubers hyping

up NIO are only hyping it up because

they've put loads of their own money into

it and obviously they want to make more

money and they want to get all of you to

start buying NIO as well to increase the

value artificially, when in reality the

company is not doing that great. I think

they've only sold about 10,000 vehicles.

10,000 vehicles is nothing in a country

that has billions of people living in it.

You think 10,000 sales is good? I get more

than 10,000 views on my YouTube channels.

Everyone's calling these Chinese electric

vehicle companies like NIO and XPeng,

they're calling them the Chinese Tesla.

And you know what? The Chinese government

is also backing these companies. And isn't

that a little bit fishy, a little bit

suspicious? It's kind of like the Chinese

government and NIO and all of these other

Chinese companies are thinking, let's,

let's pump loads of money into these

Chinese electric vehicle companies that we

have, make a big fuss about it, make all

of the Western and American investors

think, oh wow, this is the next— it's

going to be the next Tesla, they're gonna

make so much money if they all start

investing now. When actually, in reality,

these companies aren't that great.

They've done barely any sales, they

haven't made much progress in the recent

years. And once all of these investors

pump all their money into artificially

boosting up the value price of this share,

then they're just gonna vanish. NIO and

Xpeng, they're just gonna vanish out of

nowhere, out of thin air. They're gonna

take all of the investors' money and just

be laughing all the way to the bank. And

us poor saps who got all hyped up about

this stock are going to be sitting there

wondering, uh, where's, where's my money?

Where are my 34% profit gains? Where is

all of the money I just wasted on these

Chinese companies? Well, it's gone. So

yeah, you have been warned. Enjoy the

bubble, enjoy the rises, enjoy the rocket

ride while it lasts, because As the saying

goes, what goes up must come down. And I

do feel like the bubble is about to burst

on these Chinese wannabe Tesla companies.

And when it does, don't come crying to me

about it because I already told you.