NIO Stock Forecast: Nio Inc closes lower despite an early morning surge

NYSE: NIO appeared to be off to a red-hot start on Tuesday, but continued market uncertainty led the Chinese EV maker to once again close the session in the red. Shares of Nio ended up falling by 0.81% and closed the trading day at $13.44. The stock hit as high as $14.68 during intraday trading before succumbing to the downward pressure of the markets. US indices were mixed on Tuesday as the S&P 500 and NASDAQ snapped their recent slides by gaining 0.25% and 0.98% respectively. The Dow Jones sank for the fourth straight session as the blue-chip index lost a further 84 basis points. 

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The major headline that had Nio investors excited this morning was that CnEVPost reported that the company is set to announce its mass-market line of electric vehicles. The report stated that Nio has signed a deal for an economic development zone inside Hefei, which it will use to build another production facility. CnEVPost also reported that the plant will be completed and commence production as early as 2024. Following comments from CEO William Li at their earnings call, Nio is looking to add models in the price range of $30,000 to $50,000 to compete with Tesla (NASDAQ: TSLA).

NIO stock price

Nio is also believed to be still on track to open its second production facility in the third quarter of this year. The second facility is expected to double Nio’s capacity for its flagship models. Nio has been experiencing major supply chain issues as well as production shutdown from the ongoing lockdowns in China. Still, it’s nice for Nio investors to receive good news from the company considering all of the negative headwinds that have been affecting its stock as of late.