How to buy, sell and short NIO shares

How to buy or invest in NIO shares

There are two ways to buy NIO shares: derivatives trading and share trading (investing).

Derivatives, such as CFDs, enable you to speculate on positive share price movements without taking ownership of the underlying shares by going long. Alternatively, if you want to own the shares directly you can invest via share trading. When you invest you could also receive dividend payments, if the company offers them.

With us, you can trade and invest in NIO shares even when the markets are closed – with our exclusive out-of-hours offering. If you use CFDs, you can trade from 9am to 1am Monday to Thursday, and 9am to 10pm Friday (UK time). If you invest, you can buy shares from 12pm to 10.30pm Monday to Thursday, and 12pm to 10pm Friday (UK time).

Follow these steps to trade or invest in NIO shares:

Discover the differences between trading and investing

How much would it cost to invest in NIO?

NIO has a primary listing on the New York Stock Exchange (NYSE), which makes it eligible for our best commission on US shares – available to clients who opened three or more positions on their share trading account in the previous month.

If you don’t want to take ownership of NIO shares, you can speculate on the share price with derivates in order to:

• Get full exposure with a 20%-25% deposit on almost all of our tier one shares¹
• Hedge your positions with CFDs and offset any losses against potential profits

How to sell and short NIO shares

You can sell NIO shares with us, even if you bought them through another provider. Simply transfer them to us, free of charge. Or, if you don’t own the physical shares to sell, you could go short on the NIO share price with derivatives such as CFDs to speculate on downward movements.

The benefits of short selling include the ability to profit from falling share prices, and the opportunity to hedge your existing investments or long positions that could decline in value given a drop in the NIO share price.

NIO live market price

How to trade NIO out of hours

You can trade NIO out of hours, even when the markets are closed, with our exclusive extended trading times. If you want to trade NIO via CFDs, you can do so from 9am to 1am Monday to Thursday, and 9am to 10pm Friday (UK time). If you want to buy or sell physical NIO shares, you can do so from 12pm to 10.30pm from Monday to Thursday, and 12pm to 10pm on a Friday (UK time).

Learn more about out-of-hours trading

NIO shares: the basics

NIO shares are listed on the New York Stock Exchange (NYSE) following an IPO on 12 September 2018. The company was valued at $6.4 billion upon listing, but the momentum its shares has gained since late May 2020 has pushed the carmaker’s market cap to more than $50 billion.³

The company’s shares have rallied by over 1200% from June to November 2020 and, at the time of writing (26 November 2020), sit at an all-time high. The speed of the rally risks leaving the stock overvalued, but this could be just the beginning of a sharp incline, as production and profitability are both on the rise.

What is NIO’s business model?

NIO’s business model is based on the design and manufacture of ‘connected, premium, electric vehicles’. Its current model and its ambitions both aim to cater to the premium SUV market, where there is very little competition. NIO outsources some of its manufacturing to established carmaker JAC Motors – helping the company to get cars to market at a quicker rate, and at a lower cost.

NIO has four models available (EP9, EC6, ES6 and ES8), four models in the pipeline (EF9, ES3, ET5 and ET7) and two concept models (ET Preview and Eve).

NIO key personnel: who manages the company?

NIO has six executives that manage the company. The key players are:

NIO also has five members on its board of directors:

How to analyse the NIO share price

Buying or selling NIO shares must always be based on a solid foundation of both technical and fundamental analysis. It’s important to study NIO’s financials and other factors that affect the business before using your capital to deal shares or trade derivatives.

You should also analyse the health of the economy and its sectors, review news reports, study the competition, and gather all other relevant information before making a trading or investment decision.

• Technical analysis is concerned with chart patterns, technical indicators and historical price action
• Fundamental analysis is based on the fundamentals of a company, including its net revenue or profit and loss statements

Some popular technical indicators are:

• RSI, which assesses the momentum of assets to gauge whether they might be overbought or oversold
• Moving averages, which can help to determine the direction of the current trend
• Stochastic oscillator, which enables you to identify the end of one trend and the beginning of another

Some popular fundamental metrics are:

• Earnings per share (EPS): determines how much money is made by a company for each of its shares. To calculate EPS, divide NIO’s profit by the number of outstanding shares
• Price-to-equity (P/E) ratio: outlines how much you need to spend on NIO shares to make $1 in profit. To calculate P/E, divide NIO’s current market value per share by its EPS
• Return on equity (ROE): measures how much income the company makes compared to shareholder investments. To calculate ROE, divide NIO’s net income by stakeholder equity
• Dividend yield: compares the company’s annual dividends to the share price. To calculate dividend yield as a percentage, divide the dividend amount by the share price, and then multiply by 100

Learn everything you need to know about fundamental analysis

Buying and selling NIO shares summed up

• There are two ways to take a position on NIO shares – derivatives trading and share trading
• Derivatives enable you to speculate on share price movements without taking direct ownership
• Share trading enables you to own the underlying shares and receive possible dividend payments
• You can buy NIO shares from just £0 commission with us
• Buying or selling NIO shares must always be based on a solid foundation of technical and fundamental analysis

Footnotes:

¹ Deposits on leveraged trades are 20%-25% for 99.14% of tier one shares (correct as of 1 June 2020). For more information, view our share trading margin rates
² Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
³ Yahoo Finance, 2020