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Aug. 14, 2021, 8:53 a.m. EDT

How to value Nio’s stock compared to Tesla, VW, Ford and other rivals

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By Philip van Doorn

Corrected to show Tesla delivered 201,304 vehicles during the second quarter.

Chinese electric-vehicle maker Nio Inc., which sells no cars in the U.S., has a market capitalization of $60.2 billion. By that measure, it is larger than Ford Motor Co., which was founded in 1903.

That might make sense to you as an investor — after all, Nio is an innovative company that sells only electric vehicles. Ford is a legacy auto maker that is working to catch up and eventually make a full transition to electric vehicles. Shares of Nio have more than tripled in the past year, while Ford’s have almost doubled after cratering in the previous decade.

So where does Nio /zigman2/quotes/204905836/composite NIO -3.31% , which reported second-quarter results after the stock market closes Wednesday, fit in an investment thesis? Below are screens showing how its stock valuation compares to vehicle production, and how that valuation relates to projected earnings through 2025.

Read: Nio shares rise after narrower quarterly loss for Chinese EV maker

Doubling car production

For the second quarter, Nio delivered 21,896 vehicles for a 112% increase from a year earlier. The growth is impressive, but the total number of vehicles sold is still relatively small.

Here’s a look at the 10 largest auto makers by market capitalization, along with their second-quarter sales or delivery numbers (whichever was higher, if both were reported) and additional color below the table:

Company Market capitalization ($ millions) Total vehicles sold or delivered – second quarter, 2021
Tesla Inc. /zigman2/quotes/203558040/composite TSLA $702,901 201,304
Toyota Motor Corp. /zigman2/quotes/200537742/composite TM /zigman2/quotes/203803129/delayed JP:7203 $293,507 2,545,000
Volkswagen AG /zigman2/quotes/204431732/delayed VWAGY /zigman2/quotes/206919008/delayed XE:VOW $102,919 2,546,000
Daimler AG /zigman2/quotes/208157843/delayed DMLRY /zigman2/quotes/201850364/delayed XE:DAI $93,333 736,400
General Motors Co. /zigman2/quotes/205226835/composite GM $78,771 1,757,000
Stellantis N.V. /zigman2/quotes/204248628/composite STLA $66,039 1,655,400
Nio Inc. ADR Class A /zigman2/quotes/204905836/composite NIO $60,215 21,896
Honda Motor Co. Ltd /zigman2/quotes/207173990/composite HMC /zigman2/quotes/200490352/delayed JP:7267 $59,415 998,000
Bayerische Motoren Werke AG /zigman2/quotes/200850296/delayed BMWYY /zigman2/quotes/202432319/delayed XE:BMW $57,973 778,504
Ford Motor Co. /zigman2/quotes/208911460/composite F $54,228 764,000
Source: FactSet

Click on the tickers for more about each company.

You can see that those valuations are about the future, when innovators in the EV space — Tesla Inc. /zigman2/quotes/203558040/composite TSLA -3.38% and Nio, on this list — may (or may not) become as large as legacy players.

For now, Ford /zigman2/quotes/208911460/composite F -7.92% churns out mostly internal combustion engine (ICE) vehicles at nearly 35 times the rate that Nio makes EVs.

One thing to be aware of is that the legacy auto makers don’t all report their unit sales the same way. Most don’t break out electric vehicle sales.

Among those that do, definitions vary. For example, Toyota Motor Corp. /zigman2/quotes/200537742/composite TM -2.43% /zigman2/quotes/203803129/delayed JP:7203 -4.97% reported that “electrified vehicle” sales made up 26.6% of total auto sales during the second quarter. But that category includes:

  • HEV – hybrid EVs that are not plug-ins.

  • PHEV – plug-in electric vehicles.

  • BEV – battery electric vehicles.

/zigman2/quotes/204905836/composite
US : U.S.: NYSE
$ 28.63
-0.98 -3.31%
Volume: 33.76M
Jan. 19, 2022 4:05p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$48.52 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 995.65
-34.86 -3.38%
Volume: 24.96M
Jan. 19, 2022 4:00p
P/E Ratio
322.38
Dividend Yield
N/A
Market Cap
$1034.91 billion
Rev. per Employee
$662,097
loading...
/zigman2/quotes/200537742/composite
US : U.S.: NYSE
$ 202.42
-5.05 -2.43%
Volume: 562,163
Jan. 19, 2022 4:00p
P/E Ratio
9.73
Dividend Yield
2.00%
Market Cap
$293.05 billion
Rev. per Employee
$795,988
loading...
/zigman2/quotes/203803129/delayed
JP : Japan: Tokyo
¥ 2,303.00
-120.50 -4.97%
Volume: 48.19M
Jan. 19, 2022 3:00p
P/E Ratio
10.31
Dividend Yield
2.08%
Market Cap
¥33567.36 billion
Rev. per Employee
¥85.51M
loading...
/zigman2/quotes/204431732/delayed
US : U.S.: OTC
$ 30.19
+0.01 +0.03%
Volume: 258,630
Jan. 19, 2022 4:00p
P/E Ratio
7.10
Dividend Yield
2.42%
Market Cap
$133.93 billion
Rev. per Employee
$458,391
loading...
/zigman2/quotes/206919008/delayed
XE : Germany: Xetra
267.00
0.00 0.00%
Volume: 42,171
Jan. 19, 2022 6:30p
P/E Ratio
7.51
Dividend Yield
1.80%
Market Cap
€118.08 billion
Rev. per Employee
€383,350
loading...
/zigman2/quotes/208157843/delayed
US : U.S.: OTC
$ 21.03
-0.02 -0.10%
Volume: 128,585
Jan. 19, 2022 4:00p
P/E Ratio
5.43
Dividend Yield
1.19%
Market Cap
$90.58 billion
Rev. per Employee
$674,955
loading...
/zigman2/quotes/201850364/delayed
XE : Germany: Xetra
74.50
-0.14 -0.19%
Volume: 3.10M
Jan. 19, 2022 6:30p
P/E Ratio
5.76
Dividend Yield
1.81%
Market Cap
€79.85 billion
Rev. per Employee
€564,221
loading...
/zigman2/quotes/205226835/composite
US : U.S.: NYSE
$ 56.24
-2.55 -4.34%
Volume: 20.37M
Jan. 19, 2022 4:00p
P/E Ratio
7.52
Dividend Yield
0.00%
Market Cap
$85.35 billion
Rev. per Employee
$844,761
loading...
/zigman2/quotes/204248628/composite
US : U.S.: NYSE
$ 21.45
-0.14 -0.65%
Volume: 4.07M
Jan. 19, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$67.85 billion
Rev. per Employee
$521,383
loading...
/zigman2/quotes/204905836/composite
US : U.S.: NYSE
$ 28.63
-0.98 -3.31%
Volume: 33.76M
Jan. 19, 2022 4:05p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$48.52 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207173990/composite
US : U.S.: NYSE
$ 29.78
-0.63 -2.07%
Volume: 1.37M
Jan. 19, 2022 4:00p
P/E Ratio
6.21
Dividend Yield
3.43%
Market Cap
$52.83 billion
Rev. per Employee
$633,644
loading...
/zigman2/quotes/200490352/delayed
JP : Japan: Tokyo
¥ 3,424.00
-87.00 -2.48%
Volume: 4.21M
Jan. 19, 2022 3:00p
P/E Ratio
6.67
Dividend Yield
3.21%
Market Cap
¥6051.42 billion
Rev. per Employee
¥68.05M
loading...
/zigman2/quotes/200850296/delayed
US : U.S.: OTC
$ 37.00
-0.45 -1.20%
Volume: 58,200
Jan. 19, 2022 3:59p
P/E Ratio
5.23
Dividend Yield
1.73%
Market Cap
$72.97 billion
Rev. per Employee
$1.11M
loading...
/zigman2/quotes/202432319/delayed
XE : Germany: Xetra
97.86
-1.08 -1.09%
Volume: 1.13M
Jan. 19, 2022 6:30p
P/E Ratio
5.47
Dividend Yield
1.94%
Market Cap
€64.33 billion
Rev. per Employee
€930,313
loading...
/zigman2/quotes/208911460/composite
US : U.S.: NYSE
$ 22.45
-1.93 -7.92%
Volume: 152.21M
Jan. 19, 2022 4:02p
P/E Ratio
30.97
Dividend Yield
1.78%
Market Cap
$97.43 billion
Rev. per Employee
$723,737
loading...
/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 995.65
-34.86 -3.38%
Volume: 24.96M
Jan. 19, 2022 4:00p
P/E Ratio
322.38
Dividend Yield
N/A
Market Cap
$1034.91 billion
Rev. per Employee
$662,097
loading...
/zigman2/quotes/208911460/composite
US : U.S.: NYSE
$ 22.45
-1.93 -7.92%
Volume: 152.21M
Jan. 19, 2022 4:02p
P/E Ratio
30.97
Dividend Yield
1.78%
Market Cap
$97.43 billion
Rev. per Employee
$723,737
loading...
/zigman2/quotes/200537742/composite
US : U.S.: NYSE
$ 202.42
-5.05 -2.43%
Volume: 562,163
Jan. 19, 2022 4:00p
P/E Ratio
9.73
Dividend Yield
2.00%
Market Cap
$293.05 billion
Rev. per Employee
$795,988
loading...
/zigman2/quotes/203803129/delayed
JP : Japan: Tokyo
¥ 2,303.00
-120.50 -4.97%
Volume: 48.19M
Jan. 19, 2022 3:00p
P/E Ratio
10.31
Dividend Yield
2.08%
Market Cap
¥33567.36 billion
Rev. per Employee
¥85.51M
loading...
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