NIO, the Chinese electric vehicle (EV) maker, is gearing up to release its second-quarter results tomorrow, amidst a challenging year for the company. With shares down 54% year-to-date, NIO is hoping for a turnaround in its fortunes. Analysts are predicting revenue of $2.44 billion and a projected loss of $0.33 per share, representing year-over-year growth of 35.6% and 102.8% respectively.

However, not all investors are optimistic about NIO's upcoming report. Oakoff Investments, a known investor, suggests that it might be wise for investors to hold off for now. Oakoff expresses doubts about NIO's ability to meet the optimistic market expectations due to current industry dynamics.

One of the key concerns highlighted by Oakoff is the decline in NIO's deliveries in August for the second consecutive month, even though they were up 4% year-over-year. The investor points to the rising competition in the Chinese EV market, noting the entry of several new models from various Chinese automakers, including Geely, Avatr, ZEEKR, and Changan, which were found to be on par with German firms during test drives by Oakoff. The addition of established brands like Huawei and Xiaomi further intensifies the competitive pressures for NIO.

Oakoff believes that NIO will need more time to develop and monetize its model range. With a current liquidity cushion of slightly over two years, the investor foresees NIO requiring another round of investment in the near future.

The investor's cautious stance extends to the upcoming report, suggesting that there is a risk of missing profit expectations, potentially leading to a further decline in the stock price. It remains uncertain whether NIO will be able to reverse the downward trend it has experienced this year.

It is important to note that the opinions expressed in this article are solely those of Oakoff Investments. The content is intended for informational purposes only, and it is advised for investors to conduct their own analysis before making any investment decisions.