NIO Stock Price and News: Intervention by Chinese authorities brings hope to bulls
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UPGRADE- NYSE: NIO dropped by 2.98% on Friday as the electric vehicle bloodbath continued.
- Other companies continue to make up ground on NIO and other industry leaders.
- A domestic rival prepares to announce its quarterly earnings on Monday.
Update March 9: Nio Inc (NYSE: NIO) has closed Monday's trade with a fall of 7.60%, dropping beyond the broader NASDAQ decline. In after-hours trade, the Shanghai-based EV-maker's shares edged lower to $34.91. However, Chinese authorities intervened in tech stocks early on Tuesday to shore up equities. When premarket trade resumes, Nio may bounce higher. While the stock trades in New York, the moves by Beijing have reverberated around the world.
NYSE: NIO and the rest of the electric vehicle industry did not get the friendly rebound that the rest of the markets saw Friday afternoon, as they extended their recent downward spiral. Friday saw NIO shed a further 2.98% to close the whipsaw trading session at $38.11, the stock’s lowest price levels since early November. This marks one of the worst weeks for NIO since its rapid ascent through 2020 and shares have now fallen nearly 45% off of the 52-week high price of $66.99 which hit earlier in 2021.
Stay up to speed with hot stocks' news!
It is not just sky-high valuations that have knocked companies like NIO off of its highs, but also the rapid advancement of well-established automakers in the EV sector. At the forefront is German manufacturer Volkswagen, who recently predicted its market share of electric vehicles in Europe would reach 70% by 2030. This was particularly alarming to shareholders of NIO and Tesla (NASDAQ:TSLA), as both companies have plans for European expansion, especially Tesla which recently completed its new Gigafactory in Germany. Several American automakers are also threatening existing leaders as Ford (NYSE:F) and General Motors (NYSE:GM) have escalated their electric vehicle production as well.
NIO Stock forecast
One part of Nio’s recent decline was the mixed earnings results and slowdown in vehicle delivery from January to February of 2021. Now, main China rival XPeng (NYSE:XPEV) is set to report its earnings on Monday, which could once again have a direct effect on the performance of NIO as well as Li Auto (NASDAQ:LI), which posted a surprise profit in Q4 of fiscal year 2020.
Previous updates
Update March 8: Nio Inc (NYSE: NIO) has been sliding for the fifth consecutive day, trading at around $37.25, a fall of over 2%. The Shanghai-based EV-maker has dropped nearly 50% from the peak but may find some bargain-seekers at these levels. Some see the current downfall as a "punishment" for the company's lack of profits in its earnings report. However, Nick Lai of JP Morgan sees an upside and other investors may follow.
- NYSE: NIO dropped by 2.98% on Friday as the electric vehicle bloodbath continued.
- Other companies continue to make up ground on NIO and other industry leaders.
- A domestic rival prepares to announce its quarterly earnings on Monday.
Update March 9: Nio Inc (NYSE: NIO) has closed Monday's trade with a fall of 7.60%, dropping beyond the broader NASDAQ decline. In after-hours trade, the Shanghai-based EV-maker's shares edged lower to $34.91. However, Chinese authorities intervened in tech stocks early on Tuesday to shore up equities. When premarket trade resumes, Nio may bounce higher. While the stock trades in New York, the moves by Beijing have reverberated around the world.
NYSE: NIO and the rest of the electric vehicle industry did not get the friendly rebound that the rest of the markets saw Friday afternoon, as they extended their recent downward spiral. Friday saw NIO shed a further 2.98% to close the whipsaw trading session at $38.11, the stock’s lowest price levels since early November. This marks one of the worst weeks for NIO since its rapid ascent through 2020 and shares have now fallen nearly 45% off of the 52-week high price of $66.99 which hit earlier in 2021.
Stay up to speed with hot stocks' news!
It is not just sky-high valuations that have knocked companies like NIO off of its highs, but also the rapid advancement of well-established automakers in the EV sector. At the forefront is German manufacturer Volkswagen, who recently predicted its market share of electric vehicles in Europe would reach 70% by 2030. This was particularly alarming to shareholders of NIO and Tesla (NASDAQ:TSLA), as both companies have plans for European expansion, especially Tesla which recently completed its new Gigafactory in Germany. Several American automakers are also threatening existing leaders as Ford (NYSE:F) and General Motors (NYSE:GM) have escalated their electric vehicle production as well.
NIO Stock forecast
One part of Nio’s recent decline was the mixed earnings results and slowdown in vehicle delivery from January to February of 2021. Now, main China rival XPeng (NYSE:XPEV) is set to report its earnings on Monday, which could once again have a direct effect on the performance of NIO as well as Li Auto (NASDAQ:LI), which posted a surprise profit in Q4 of fiscal year 2020.
Previous updates
Update March 8: Nio Inc (NYSE: NIO) has been sliding for the fifth consecutive day, trading at around $37.25, a fall of over 2%. The Shanghai-based EV-maker has dropped nearly 50% from the peak but may find some bargain-seekers at these levels. Some see the current downfall as a "punishment" for the company's lack of profits in its earnings report. However, Nick Lai of JP Morgan sees an upside and other investors may follow.
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