NIO stock alert: The Chinese electric car manufacturer is about to make a big turnaround!

In case you haven’t noticed, an international trade war is looming in 2024. This is problematic for the China-based manufacturer of electric vehicles Nio (NYSE:NIO), no doubt. On the other hand, Nio stock has already crashed as the high-efficiency product market has already absorbed the news of the trade war. Therefore, the stock is likely to move higher next.

Despite international tensions, Nio’s recently reported vehicle delivery numbers are quite encouraging, so consider buying Nio shares at a discount while the doomsayers are selling them.

Nio and tariff problems

Through no fault of its own, Nio has found itself caught in the crossfire of trade tensions between several nations. First, the Biden administration announced that it would quadruple tariffs on Chinese-made electric vehicles imported into the United States.

Then the European Union announced that it would impose “additional tariffs” of up to 38% on electric vehicles imported into the EU from China, according to The New York TimesHowever, none of this should have come as a complete surprise.

The guard stated that the EU tariffs follow “a nine-month investigation into allegedly unfair government subsidies for Chinese battery electric vehicles (BEVs).” Undoubtedly, the highly efficient financial market has already priced its related fears into Nio shares.

That’s one of the reasons why now is your chance to buy Nio stock for under $5. And if you’re serious about buying on fear and selling on optimism, now is the time to buy because there’s no shortage of fear.

Nio increases its electric vehicle deliveries in April and May

Moreover, it’s not as if Nio has stopped selling electric cars. In fact, the automaker’s vehicle delivery statistics indicate a rapid acceleration.

Admittedly, Nio had a lackluster first quarter of 2024. As it turns out, the company’s electric vehicle deliveries fell 3.2% year-over-year to 30,053.

However, this is nothing new. Just look at what has happened so far in the second quarter of 2024.

This will blow your mind. In April, Nio’s vehicle deliveries exploded 134.6% year-over-year to 15,620. And in May, Nio’s EV deliveries jumped 233.8% year-over-year to 20,544.

Suffice it to say that Nio’s second-quarter results should significantly beat the automaker’s first-quarter results, so I believe that sooner or later the market will recognize Nio’s operational improvements and adjust the stock price accordingly.

Nio shares under $5 are a bargain

Are you ready for the big turnaround? Nio’s recently published figures on electric vehicle deliveries indicate extremely strong growth. At the same time, concerns about the international trade war are likely already priced into Nio shares.

So if Nio stock price is below $5 as you read this, I recommend you grab a handful of shares. Nio’s comeback story will be a great one, and you should be there before the market suddenly favors Nio again.

On the day of publication, David Mnadel had (neither directly nor indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com policies. Publishing guidelines.