Is NIO stock on Webull a good long-term investment?

Electric cars are the future and investing stock in EV companies could be a smart choice. Given Nio's impressive sales last year, it is safe to say that it is only going to grow. As a beginner, investing in Nio would be a good start. But don't put everything in one place and its always better to diversify it to evade big risk.

The electric vehicle market is certainly a long-term play, despite the industry clearly in a bubble phase. It might demand on what company you invest in, the traditional buy point, and how much you are betting on the sector.

When it comes to NIO, the stock has been a mixed bag. Shares have been cut in half since topping $70 earlier this year. There is a reason why the company has a float shorted interest of about 5%.

One of the primary hurdles for NIO to overcome is the Chinese government. Investors have become concerned about U.S.-listed Chinese companies amid crackdowns by government regulators in Beijing, which has included targeting this sector and even the EV competition from rival EV startups Li Auto (LI) and Xpeng (XPEV).

That said, the company's second-quarter losses were narrower amid higher EV sales. Still, the corporate quarterly earnings report were disappointing for investors.

There are too many variables for NIO as a short-term play, even if it can generate impressive EV value.

This is a long-term investment because, despite the regulatory challenges, China is going green and going big on the electric vehicle technology. Whether it will rely on domestic brands or not remains to be seen, especially as U.S. brands, such as VW and Tesla, bet big on overseas markets.

Perhaps a good entry point, if you are interested in pursuing this stock further, would be around $35.