NIO's market value has soared dozens of times, surpassing BYD to become the No. 1 in China and No. 4 in the world

Recently, the new Chinese car-making companies have performed amazingly in the US stock market, with their share prices rising and their market capitalizations hitting new highs. Thanks to the excellent performance of the stock market, the market capitalization of NIO, which was established only six years ago, has surpassed BYD, becoming the Chinese car company with the highest market capitalization and the fourth largest in the world.

As of the close of the U.S. stock market on November 27, NIO's share price closed at $54, and the company's market value reached $72.84 billion, or about RMB 479.7 billion. Meanwhile, BYD's share price fell by 1.12% on November 30, and its total market value dropped to RMB 469.65 billion, surpassed by NIO and temporarily giving up the throne of China's most valuable automaker.

In the latest global auto company market value ranking, NIO ranks fourth in the world, only behind Tesla, Toyota and Volkswagen.

Over the past year or so, NIO has been on a roller coaster ride. On September 24 last year, NIO’s Q2 financial report was very ugly, with revenue of 1.508 billion yuan and a net loss of 2.185 billion yuan, far exceeding market expectations. NIO’s stock price plummeted by 20% that day, and then fell for five consecutive trading days, with the stock price falling to $1.19 at one point, on the verge of Nasdaq’s delisting red line.

After that, NIO successfully raised funds, achieved record performance, and saw its delivery volume rise rapidly. Instead of delisting, NIO's stock price surged, and its market value increased dozens of times compared to last year's low point.

Some people believe that NIO's high market value is due to its recent good market performance, with new car deliveries and financial data continuing to improve; but some industry insiders point out that NIO's current performance still has a significant gap with traditional car companies and cannot support its extremely high market value.

However, NIO represents a technology company, and its market value reflects the market's long-term expectations for NIO, which is similar to Tesla.

On November 18, NIO officially released its Q3 2020 financial report. The report showed that NIO delivered a total of 12,206 vehicles in the first three quarters, with total revenue of 4.526 billion yuan, a car gross profit margin of 14.5%, and a comprehensive gross profit margin of 12.9%.

It is worth mentioning that not only NIO, but also China's new car-making forces have performed well in the US stock market. The share prices of Xpeng Motors and Li Auto are also rising rapidly. Since November, Xpeng Motors' share price has risen by more than 260%, and Li Auto's share price has risen by more than 110%.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.