NIO Stock Forecast: Nio Inc drops lower during CPI-induced market sell off
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UPGRADE- NYSE: NIO fell by 3.61% during Friday’s trading session.
- Nio has announced that it will develop its own battery packs by 2024.
- Following its earnings report, Nio received a couple of analyst downgrades.
NYSE: NIO dropped lower for the second straight day following its Q1 earnings report, as the Chinese EV maker fell by 4.48% during the week of trading. On Friday, shares of Nio sank by 3.61% and closed the trading session at $18.14. May’s inflation reading came in higher than expected as was indicated in the CPI report released Friday morning. All three major indices tumbled as investors feared that the Fed would be taking a more aggressively hawkish approach to fighting inflation. THe Dow Jones dropped by 880 basis points, the S&P 500 tumbled by 2.91%, and the NASDAQ crashed by 3.52% during the session.
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Nio did have some positive news on Friday as the company revealed it is planning to make its own battery packs by 2024. Nio already sports the innovative battery swap technology, and it looks like they will be taking this one step further by building its own batteries in-house. Nio is hoping that this will improve margins and revenues. These batteries will also be used in its new mass market sub-brand that it anticipates will be on the roads in the second half of 2024.
NIO stock price
Nio received a couple of cuts to its price targets following its earnings report on Thursday. Mizuho reduced its price target from $60 to $55, while US Tiger Securities lowered its price target from $40 to $35. It should be noted that both companies do maintain a Buy rating for Nio’s stock which shows that the downgrades are likely just due to the current market environment rather than perceived company performance.
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- NYSE: NIO fell by 3.61% during Friday’s trading session.
- Nio has announced that it will develop its own battery packs by 2024.
- Following its earnings report, Nio received a couple of analyst downgrades.
NYSE: NIO dropped lower for the second straight day following its Q1 earnings report, as the Chinese EV maker fell by 4.48% during the week of trading. On Friday, shares of Nio sank by 3.61% and closed the trading session at $18.14. May’s inflation reading came in higher than expected as was indicated in the CPI report released Friday morning. All three major indices tumbled as investors feared that the Fed would be taking a more aggressively hawkish approach to fighting inflation. THe Dow Jones dropped by 880 basis points, the S&P 500 tumbled by 2.91%, and the NASDAQ crashed by 3.52% during the session.
Stay up to speed with hot stocks' news!
Nio did have some positive news on Friday as the company revealed it is planning to make its own battery packs by 2024. Nio already sports the innovative battery swap technology, and it looks like they will be taking this one step further by building its own batteries in-house. Nio is hoping that this will improve margins and revenues. These batteries will also be used in its new mass market sub-brand that it anticipates will be on the roads in the second half of 2024.
NIO stock price
Nio received a couple of cuts to its price targets following its earnings report on Thursday. Mizuho reduced its price target from $60 to $55, while US Tiger Securities lowered its price target from $40 to $35. It should be noted that both companies do maintain a Buy rating for Nio’s stock which shows that the downgrades are likely just due to the current market environment rather than perceived company performance.
Like this article? Help us with some feedback by answering this survey:
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