If you've been fortunate enough to be invested in ev stocks, i hope you've been absolutely raking in the money. Companies like tesla, workhorse and hylion have all been posting impressive returns. The sector as a whole is very hot right now, in fact, the chinese eevee company neo just had back to back all-time high days. What's going on moon gang, i hope you're having a great day.

My name is matt and, in this video i'll be taking a more in-depth look at neo i'll, be covering what differentiates this specific eevee company. The recent news that prompted a rally and, at the end i'll be sharing my opinion on. If this is a good investment or not, if you're interested in this type of stock market related content join the moongig by hitting the subscribe button, don't forget to turn on your notifications, so you don't miss any of the new videos before i get started. If you watched any of my previous videos, you'll notice that this is a new background, i recently moved and i'm in the middle of setting up a new filming studio.

Please bear with me, as i sound proof, the room to take care of the echo and make the background a little bit more aesthetically pleasing alrighty, then, let's dive into it, neo, whose stock ticker is nio, was up over 14.5 percent. Today, yesterday, the stock ran an impressive 19.3, which means over the past two days. The stock is up an incredible 36.4 percent. What's even more impressive.

Is that since the start of june, this stock is up a truly mind-boggling, 416 percent? Obviously this is an incredible return. So it's worth the effort to better understand. What's going on, neo is a chinese ev company that is working to become a direct competitor to tesla. They currently offer three fully electric suvs.

The first is in ec6, they also have an es8 and the last is in es6. In reality, neo is much more of a lifestyle company. It has huge brand recognition and loyalty in china. I know that sounds great and all, but if their main product is electric vehicles, what sets them apart? What differentiates neo the answer is their batteries.

They have come up with a system that takes five minutes to swap a battery which eliminates the lengthy wait time of a full recharge. To give you more perspective, this table shows the charge times for various tesla models and charging setups. As you can see, it takes hours for teslas to be fully charged at home in terms of superchargers. Operating at peak efficiency can recover up to 75 miles of charge.

In five minutes. Other tesla supercharging stations can take about 20 minutes to charge 50 40 minutes to charge 80 and 75 minutes to charge 100. Now, personally, i don't think these charging times are horrible, but i do understand the appeal of a 5 minute battery swap to make their business model even better. Neo recently announced the launch of a battery as a service.

The bas model has long been planned with our unique battery swap technologies. The successful launch of the bas model will enable neo users to benefit from the lower initial purchase price of our products, flexible battery, upgrade options and assurance of battery performance. Clearly, new is making very shrewd business moves to attract new buyers, and this isn't the only enticing services they offer. They have lifetime free nationwide charging services up to two times per month up to 12 times per year.

They also have free power services 15 times per month. My point is even though that they're relatively newer and smaller than tesla they're working very diligently to be competitive. These strategic decisions have been paying off because their deliveries have been rising from 2018. Until now, with the es6 being the most popular model, if you decide to read through this entire earnings report, which i would highly recommend, you'll notice that they're even raising their guidance in the quarter, we're currently in they're looking to hit over 11 000 deliveries with all That being said, it's actually not the reason why neo just hit a new high.

The recent surge in neo stock price was due to a handful of analyst upgrades, ubs upgraded, citing fundamentals, morgan stanley, upgraded neo, saying the electric car stock could jump. Another 15 and even citibank came out with some bullish statements on the company. Obviously, if you're an investor - it's always nice to see when the big brain analysts agree with your position after reading through all their statements, the analysts seem to be focused on two main things. The first is the new battery swapping plan, which makes the price of the electric car ten thousand dollars cheaper.

This is so pivotal because batteries are the most expensive portion of an electric vehicle. Hence neo is addressing the higher price pain point of evs six battery swaps per month is priced at about 142. For those who don't want to swap batteries but still need the pack, the cost is about 12 a month. This effort to make their vehicles more accessible.

Will increase their total potential market size and, in the long run, will increase both their top and bottom line? Analysts and investors are also excited about neo's plans to expand. The company announced that they would like to begin with europe in the next few years. I personally think this is an incredibly smart plan, because electric vehicles are getting more and more popular each year. If neo can capture even a small percent of the global market, the company's revenues will explode and don't forget.

Neo is arguably the best position company to take advantage of the massive chinese market. Neo is clearly on a very good trajectory from 2018. Until now, their total revenues have essentially doubled from 700 million to 1.3 billion. The company is operating at a loss, but the loss is getting smaller.

Each year in 2018, the loss was 3.3 billion and now it's 1.1 billion, this most likely means neil will have to raise more money in the future. But they've done this in the past and there wasn't any issue to this point in the video. I've mainly been bullish on neo and well that's for good reason. Their deliveries are continually expanding, their net income is trending towards break even and the business as a whole is looking to expand globally.

These are all very positive things, which is exactly why various analysts are increasing their price targets and bullish sentiment. When you consider the fact that the ev sector is growing rapidly on the world scale and that neo is specifically well positioned to one day become a competitor to tesla, i personally think that it's reasonable for the stock to hit 30 within the next year. Now, with all that being said, i do have some serious concerns that you should be aware of. It's no secret that political tensions are rising, which could easily have an adverse effect on china-based companies such as neo, and on top of that, the numbers reported in their earnings.

Announcements are much more difficult to verify, which brings their validity into question. This is the exact issue we saw with luck and coffee. Obviously this is a very dynamic situation, so things could definitely change in the future. I just wanted you to be aware of the current landscape to be 100 transparent.

I think that neo has a bright future, but the current risk to reward ratio of tesla, workhorse and hylion is more favorable, which is exactly why i'm investing in those three companies and not neo. If you agree with my analysis or if you have a completely different opinion, feel free to, let me know in a comment below and if you're looking for a trading group that talks about this type of stuff day in and day out, i would recommend checking out Smd trading i'll leave a link in the description of this video. If you enjoyed the video or found value in it. Let me know by hitting the like button and if you want to join the moon gang subscribe to the channel and don't forget to turn on your notifications, thanks for watching and until next time best of luck in the markets.

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