China-based electric vehicle (EV) manufacturer Nio (NYSE:NIO) can’t seem to catch a break on Wall Street lately. NIO stock is far below its peak price in 2023. However, the market will re-rate Nio sooner or later, and now’s the time to take advantage of low share prices.

I’m not claiming that Nio is a perfect company right now. Morgan Stanley analyst Tim Hsiao observed “lingering concerns about NIO’s cash flow.” Hsiao also feels that “investors are likely to focus on whether NIO can narrow its cash burn rate sufficiently from 3Q by improving scale and working capital.”

Yet, even with Nio’s financial imperfections, the company still has strong growth potential. In time, reluctant investors will wish they had taken a Nio share stake while the U.S. market was ultra-pessimistic about the company.

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A 50%-Off Sale on NIO Stock

There’s no denying that China’s economy is under pressure in 2023. And again, Nio’s cash flow is a concern. Still, it was excessive for the U.S. market to chop NIO stock in half, bringing it from $16 to less than $8 since August.

Short-term investors have seemingly ignored Nio’s amazing progress in September. That month, Nio’s EV deliveries increased 43.8% year-over-year.

Furthermore, Nio may have a prime opportunity to gain more control over its vehicle production process. Not long ago, Anhui Jianghuai Automobile Group disclosed its plans to sell factory assets. Those assets include two factories where Anhui Jianghuai manufactures vehicles for Nio.

Referring to those two vehicle production factories, Hsiao posited that it could make “strategic sense for NIO to assess potential investments related to the F1 and F2 plants.” Moreover, acquiring the two factories could help to “mitigate the risks associated with supply chain disruptions and production hiccups in future” and enhance “overall operational efficiency and stability.”

Nio’s Battery Swapping Service Adds Value

There’s no guarantee that Nio will acquire the two factories from Anhui Jianghuai. What’s known for certain, though, is that Nio has a battery swapping service and many other EV makers don’t.

This service sets Nio apart and could give the company a competitive edge in China and elsewhere. As Research and Markets explains, Nio calls this service Battery as a Service (BaaS), and it allows “users to purchase electric vehicles at a lower price while leasing the battery separately.”