NIO stock

NIO has seen its shares slump over the last year. Rising interest rates, supply chain issues, and tensions between China and the US are to blame.

NIO's smaller peers, such as XPeng ( [XPEV](https://seekingalpha.com/symbol/XPEV)) and Li Auto ( [LI](https://seekingalpha.com/symbol/LI)) also did not grow their sales as much as the market, thus NIO was not the only EV player that saw its sales growth rate dip. From a valuation perspective, NIO looks like one of the better EV players, as it trades at a hefty discount relative to many of its peers. Still, NIO hit a new record in Q3, and delivered growth in the 30% range, which is far from bad. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. NIO's production constraints should ease going forward, based on easing supply chain worries that I expect over the next couple of quarters as lockdown measures in China will hopefully wane eventually and since companies adapt to these issues over time. As long as NIO's brand remains strong and there is demand for its vehicles, the underwhelming deliveries growth rate thus looks like a temporary issue. Q3 numbers overall were better, but with a 29% year-over-year growth rate NIO grew less than the overall EV market in China, and it underperformed competitors such as BYD ( [OTCPK:BYDDY](https://seekingalpha.com/symbol/BYDDY)), which delivered growth of close to 200% in the same time frame. Especially in NIO's home country, China, where growth has been excellent in the recent past. On top of that, the market has also become more worried about Chinese equities in general, due to escalating tensions between China and the US. The company is not profitable yet but has a strong growth outlook, which should allow it to become profitable eventually. NIO has seen its share price decline by 72% over the last year. This has made the stock a lot cheaper, relative to where NIO traded when its shares hit their highs last year.