© Andy Feng/Shutterstock.com

NIO is one of the foremost electric vehicle (EV) manufacturers in the world, despite not being well-known in most of the western world. Still, the company has made a name for itself via its revolutionary technology (and potential income generator) that is centered around quick battery swaps instead of long charging times.

Since being listed on the NYSE (New York Stock Exchange), NIO has experienced rapid increases and decreases in share price.

Today, we are going to take a look at NIO stock and learn if they’ve ever had a stock split, plus a bit about what it could mean for you as a potential (or current) investor. Let’s get started!

Has NIO Ever Had a Stock Split?

As it stands, Nio has never split its stocks, meaning there are as many shares available as there were when the company first went public in the United States in 2018.

Stock splits are an interesting element of the stock market that many individual (retail) investors either aren’t aware of or don’t understand. In the case of NIO, there haven’t been any stock splits while it’s been listed on the NYSE (Stock Split History), although the share price has seen a lot of volatility since going public back in 2018. For comparison, Tesla, another global EV maker, has experienced two stock splits since going public.

Stock splits are initiated by the company, so NIO’s lack of stock splits is a decision they’ve made. Still, with only a few years under their belt and a relatively cheap share price, it makes sense as to why they haven’t initiated a split quite yet.

What is a Stock Split?

A stock split is essentially a decision by a company to split its existing shares by some agreed-upon number and then adjust the price to reflect the same total value of shares while having more shares overall.

For example, if Company X has 10 shares, each worth $10, it would have a market capitalization (total value of all its shares) of $100. If Company X initiated a 2-for-1 stock split, there would be 20 shares, each worth $5 after the split, but the market capitalization of $100 would remain unchanged. Every shareholder would also receive an updated number that reflects the stock split. If an investor in Company X held 5 shares, for example, they would then hold 10 after the split, keeping their total percentage stake in the company unchanged.

Why would a company split its shares? Well, the answer is ultimately up to the company. One of the most common reasons, however, is to ensure regular people (retail investors) still have access to stock if they want to invest. Tesla, for instance, was once around $800 a share before a split, making it harder for people to invest in whole shares of the company. A stock split allows the company to retain value while also making it easier for people to invest.

Since splits are usually done as a result of price growth, they are generally a positive sign for the company and its future.

Why Hasn’t NIO Ever Split its Stock?

Currently, NIO has never initiated a stock split. While there isn’t necessarily a singular reason, it probably has to do with the fact that NIO isn’t an incredibly expensive stock to purchase.

When NIO IPO’d (initial public offering or, in other words, when the company was first listed on the stock market), it was listed for less than $10. At its peak in 2021, it reached around $60 before dropping back down to its current price, which is around $10 again. Despite growing rather quickly and then heading back down, the price per share was never at a level where it would inhibit most investors from acquiring a position in the company. Even at its peak of ~$60, NIO still wasn’t at a level where it mattered enough to initiate a split.

With that in mind, we can answer the question of “if” NIO will ever split its stock. Ultimately, they would need to see a LOT more growth before it would be beneficial to the company to initiate a split. Currently, they have a reasonably priced stock, making a split unnecessary.

For reference, Tesla, a competitor of NIO’s, has split their stock price twice. The first occurred on August 31st, 2020, and was a 5-for-1 split, while the second occurred on August 25th, 2022, and was a 3-for-1 split. This means that there are now 15x more shares when multiplying both splits cumulatively. Before the first split, Tesla stock was well over $1,400, showing just how hard it was for retail investors to enter the company. When they initiated the second split, the price was about to clear $900.

For NIO to split, it would need to see a lot more growth — something along the lines of Tesla’s — in order to justify it.

NIO EV
NIO has not yet split its stock, likely due to its affordable share price.

©Andy Feng/Shutterstock.com

Conclusion

Currently, Nio hasn’t initiated any stock splits. Since the share price has fluctuated between $10 and $60, their barrier to entry is still quite low. If they were ever going to split, the company would likely need to see a much higher share price that would make it difficult for potential investors to take a position.

  • NIO has never had any stock splits.
  • Since stock splits are usually to lower the individual share price, NIO hasn’t needed to utilize that tool.
  • In order for NIO to justify a stock split, it would need to experience a much larger increase in share price. Currently, that doesn’t look to be the case anytime soon.

Up Next

NIO Stock Split and What it Actually Means for You FAQs (Frequently Asked Questions) 

Has NIO ever had a stock split?

Currently, NIO has never initiated a stock split.

What is a stock split?

A stock split is when a company further increases the number of shares of a company by splitting existing ones. The price of each share is adjusted to reflect the new number of shares without impacting total company value.

Why hasn't NIO split its stock?

NIO probably hasn’t split its stock because its share price has never gone high enough to justify it.

Why does a company split stock?

Companies will often split stock in order to reduce the individual share price, allowing retail investors (regular people) to invest in the company more easily.

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  • Stock Split History Available here: https://www.stocksplithistory.com/?symbol=NIO#:~:text=According%20to%20our%20NIO%20stock,NIO%20has%20had%200%20splits.
  • Investopedia Available here: https://www.investopedia.com/terms/s/stocksplit.asp#:~:text=Stock%20splits%20are%20generally%20done,and%20it%27s%20a%20positive%20signal.
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  • Macrotrends Available here: https://www.macrotrends.net/stocks/charts/TSLA/tesla/stock-splits