How Nio Day silences the bears
Nio stock propelling to all-time highs
The portfolio grew by 2.6% 📈 today, completely outpacing the S&P500 -0.66% 📉 and the Dow Jones -0.29% 📉, led by gains in $GRWG and $NIO.
$NIO ⚡ ($62.70, +6.4%) ️
As expected, Nio Day did not disappoint and investors were rewarded with a 6.4% increase in $NIO on the first trading day after the announcement. Some of the Nio Day highlights include:
- Nio ET7 — Nio’s first entry into the premium luxury sedan market. The car is comparable to the Model S with ET7 versions that can go up to 310 miles at the price of 448,000 yuan (about $69,000) and up to 435 miles at the price of 506,000 yuan (about $78,000). The vehicles are slated to be delivered in China in early 2022.
- 150 kWh battery — Nio will be building a solid-state, 150 kWh battery that has a range of up to 620 miles, effectively squashing most range anxiety arguments. As we understand it, the new battery packs can be upgraded and installed into all existing Nio models.
- Battery Swap Station 2.0 — The 2.0 version of their battery as a service (BaaS) offering can handle up to 312 swaps per day or 3 times more than the previous version. Nio currently has 170 stations and will triple the number to 500 by the end of the year.
With larger packs and faster and more stations, battery and range are becoming less of a negative factor. While there will be pullbacks, there is tremendous updir to $NIO in 2021. (Update) Nio just announced an offering of $1.3 billion in convertible notes leading to a 2% decline in aftermarket trading.
$GRWG 🌿 ($51.56, +13.8%)
GrowGeneration was the portfolio’s largest gainer for the day. The company reported a 140% increase in revenue, growing from $80 million in 2019 to $192 million in 2020. Moreover, the company raised outlook for 2021, causing the stock to skyrocket to all-time highs.
We sold a small position today to take some profit, but overall there continues to be tremendous upside with favorable regulations in the cannabis industry due to the Democratic sweep. The update to the 2021 outlook only confirms the upside potential for $GRWG.
TICKER ACTION CHANGE IN POSITION
$SQ BUY +20.0%
$GRWG SELL -8.3%
$NVDA SELL -12.5%$SQ 💰 ($225.50, -6.6%)
Square was the biggest portfolio laggard as it dropped XXX due to selloff in the Bitcoin market. With Square’s decision to reserve some of its assets in Bitcoin, $SQ will have expanded volatility tied to $BTC price. Added 20% to the position to take advantage of the dip.
$NVDA 🚗 ($544.86, 2.6%)
Nvidia becomes a nice beneficiary of the Nio Day, as it was announced that Nvidia will be the provider of Nio’s self-driving hardware. Sold a small position to profit but we see $NVDA primed to break out of its current range.
