NIO: Beware, Value Trap

Sebastian Gorczowski/iStock via Getty Images Since the beginning of the year, NIO Inc. (NYSE:NIO) has been in free fall, dropping more than 35% YTD with the stock near 52-week lows, and flirting with penny stock territory. While some would argue that NIO stock may be an opportunity at current levels given that it’s trading near an all-time low price-to-sales multiple, I believe there is more downside for NIO. The reason I believe that’s the case is that NIO has been losing market share throughout the years in China, its main market. Moreover, NIO’s focus on battery-swapping technology will lead its…