Should I buy in the dip with NIO?

In February, Chinese EV maker NIO witnessed a share price dip.

NIO has temporarily cut down on production due to a chip shortage.

The company has an excellent history of well-performing stocks. Therefore, the current dip is temporary.

Also, its deliveries have gone up with a record 17,353 vehicles in the last quarter.

Plus, electronic vehicle sales are still on an upward trajectory.

Still, as the pandemic restrictions ease, NIO is likely to see a growth in sales.

It would help if you bought NIO in the dip because the company is already looking at expansion. For instance, it's seeking to be listed in the Hong Kong stock market.

Yes, you can buy the dip in NIO's share price because the company's fundamentals are solid despite the recent pullback. NIO is a Chinese electric vehicle manufacturer that has seen its share price fall over 24% since January with other EV and growth stocks.

The company's shares have fallen despite reporting higher vehicle deliveries compared to Q1 2020 figures. NIO delivered 20,060 vehicles in Q1 2021, representing a 422.7% increase to last year's figures, indicating that the company's business is quite solid.

The dip in NIO stock also appears to have bottomed, given that the company's shares have been trading sideways since early March as the price bounced off a key support level.

NIO expects to maintain its current growth trajectory in Q2 2021, with vehicle deliveries expected to be up 113% compared to last year. Hence, it is clear that the recent dip is not a reflection of a deterioration of the company's business, which is why I would buy.