- NYSE:NIO fell by 3.31% on Tuesday amidst an unsettled day for the broader markets.
- Deutsche Bank downgrades NIO’s price target from $70 to $60 ahead of its earnings call on Thursday.
- Ark Invest is the latest investment firm to have NIO on its radar.
NYSE:NIO has been in recovery mode lately as the Chinese electric vehicle maker was hit hard by the NASDAQ correction in March. After the stock climbed all the way back to above $43 on Monday, shares fell on Tuesday partly as a sympathy play to Tesla (NASDAQ:TSLA) which experienced a near 5% sell off after its earnings call on Monday. NIO dropped by 3.31% to close the trading session back down at $41.21. Shares are still down 22% year to date in 2021, and nearly 40% from the all-time highs of $66.99 that it hit in late January.
Stay up to speed with hot stocks' news!
NIO shareholders received some troubling news ahead of Thursday’s earnings call when Deutsche Bank analyst and long-time NIO bull downgraded the stock. Yu cites the semiconductor shortage as an artificial ceiling for NIO and other car manufacturers, and that the rest of this year will be a levelling off period for the electric vehicle sector. Yu did mention that NIO should be ramping up in 2022 with the release of its ET7 luxury sedan as well as its autonomous driving subscription service. The price target was lowered from $70 to $60, which still represents a near 45% upside from Tuesday’s closing price.
NIO Stock forecast
Add Cathie Wood of Ark Invest to the long list of investors that have NIO on her radar. In a recent interview Wood stated that Ark was very interested in how China was focussing on the electric vehicle sector, and that they were closely monitoring how NIO and domestic rival XPeng (NYSE:XPEV) perform. Wood believes that the Chinese government is going to push one of these two brands to become the predominant EV maker in the country.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0750 to start the week
EUR/USD trades in positive territory above 1.0750 in the European session on Monday. The US Dollar struggles to find demand following Friday's disappointing labor market data and helps the pair hold its ground.
GBP/USD edges higher toward 1.2600
Following Friday's volatile action, GBP/USD pushes higher toward 1.2600 on Monday. Soft April jobs report from the US and the modest improvement seen in risk mood make it difficult for the US Dollar to gather strength.
Gold rebounds above $2,310 after downbeat NFP data, eyes on Fedspeak
Gold price trades in positive territory above $2,310 after closing the previous week in the red. The weaker-than-expected US employment data have boosted the odds of a September Fed rate cut, hurting the USD and helping XAU/USD find support.
Addressing the crypto investor dilemma: To invest or not? Premium
Bitcoin price trades around $63,000 with no directional bias. The consolidation has pushed crypto investors into a state of uncertainty. Investors can expect a bullish directional bias above $70,000 and a bearish one below $50,000.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.