- NYSE:NIO struggled on Thursday losing nearly 10%.
- The electric vehicle sector has been in the spotlight with the Churchill Lucid merger.
- NIO releases Q4 2020 earnings on Monday, March 1.
Update, February 26: Nio Inc (NYSE: NIO) is moving up alongside the broader stock market as lower bond yields are pushing equities higher. The increase in returns on US debt prompted a sharp sell-off in global markets on Thursday and a bounceback is seen on Friday. Central bankers all over the world are stressing calm about the economic recovery and some are vowing to push bond yields lower by buying more of their government's debt. Another factor aiding Nio is the publication of robust earnings from rival Li Auto. The rival Chinese EV-maker is experiencing a similar growth path to Nio. At the time of writing, NIO is up some 1.5% to around $475.50
NYSE:NIO looks like it has finally hit a consolidated bottom and may be ready to trend back upwards after trading flat for the past couple of weeks. On Thursday, shares gained 5.60% to close the trading session at $51.86 amidst a global market rally after a two-day mini correction. The selloff was over concerns that the United States would be raising its interest rates sooner than most investors believed. Those fears were dashed on Wednesday when Federal Reserve Chairman Jerome Powell told Congress that he is in no rush to raise interest rates as the U.S. economy continues to heal from the COVID-19 pandemic.
Nio was not the only electric vehicle company to rebound on Wednesday, as industry leader Tesla (NASDAQ:TSLA) added 6.18% after hitting its lowest price levels of 2021 on Tuesday. Tesla was buoyed by a public report that Ark Invest had scooped up several hundred thousand shares of Elon Musk’s company during its recent downturn. Catherine Wood and Ark Invest have been huge supporters of Tesla for years now, and seem comfortable enough to continue to add to its portfolio, even at these lofty valuations.
NIO stock news
Nio will look to build upon its record vehicle deliveries last quarter, as well as increasing its year-over-year revenues once again. Industry and China rival Li Auto (NASDAQ:LI) will report its quarterly earnings on Thursday of this week, and investors may be looking at Li’s performance as a gauge of what to do with Nio’s stock moving forward. XPeng (NYSE:XPEV) is also preparing its earnings call on March 8th, as the well-inflated electric vehicle sector in China has lost some of its steam since the start of 2021.
Previous updates
February 26: Shares in NIO suffered on Thursday, closing at $46.81, a loss of nearly 10%. The electric vehicle (EV) sector has been on trend for 2021 but recently some weakness has spread across from tech and the broader market. Shares in CCIV, which has just merged with EV manufacturer Lucid Motors, tumbled after the merger news was announced and Tesla, the EV market leader, has also suffered a share price reversal recently. Earnings on Monday will give further direction to NIO investors.
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