NIO Stock Forecast: Nio Inc closes higher as ADRs rebound from Evergrande default

NYSE: NIO appeared to be on its way to another losing session to close the week but a late day rally flipped the fortunes of both Nio and its peers. Shares of NIO gained 0.62% on Friday and closed the trading week at $34.26. It was a nice week of recovery for Nio which gained 5.90% during the past five trading sessions. The Chinese EV maker is still down by nearly 19% over the past month, as the stock was caught up in the recent growth stock correction. After a tumultuous morning, all three major indices managed to close the day higher, with the S&P 500 pacing the markets by gaining 0.95%.

---

Stay up to speed with hot stocks' news!

---

While Nio was not directly affected since the company does not trade in Hong Kong as of yet, many other dual-listed companies were trading lower in Hong Kong. The reason? Chinese property development giant Evergrande was officially considered to be in default after not paying its debt. The result was a bearish day across Asian markets as a majority of Chinese companies that are known to Western investors tumbled during the session. In US trading, Chinese ADRs actually rebounded into the close, as US investors shrugged off the Evergrande scandal as the S&P 500 completed its best week since March. 

NIO stock price

German automaker Volkswagen, which has recently made a big push into the Chinese market, has welcomed Nio and XPeng (NYSE: XPEV) into the European Union Pool for carbon targets. The two Chinese EV makers have recently expanded into the European market of Norway, with plans on moving into additional markets in 2022. The EU Pool for carbon targets ensures that automakers are meeting a standard of a certain rate of carbon usage or risk being fined.

---