NIO Stock Forecast: Nio Inc dries up as drought hits Chinese automotive industry

NYSE:NIO fell by 0.85% during Thursday’s trading session.
A drought in the Sichuan Province of China is having an effect on the automotive industry.
EV Stocks extend declines as investors weigh Fed’s FOMC minutes.

Stocks Reporter FXStreet

NYSE:NIO slipped below the $20.00 price level on Thursday as a new headwind is providing some short-term difficulties for the Chinese EV sector. Shares of Nio dipped by a further 0.85% and closed the trading day at $19.91. Overall, stocks inched higher on Thursday as investors weighed an early morning report about housing sales dropping by 6% in July. The fall in sales likely signals a recession in the US housing market. Overall, the Dow Jones added 18 basis points, while the S&P 500 and the NASDAQ rose by 0.23% and 0.21% respectively during the session.

Stay up to speed with hot stocks' news!

A recent drought in the Sichuan Province of China has been causing some headaches for Chinese automakers. Local power grids are being strained as well as electric vehicle charging stations and Nio’s battery swap stations. There are concerns that this could have a short-term impact on automotive manufacturing as well, which is the last thing that the Chinese EV makers need after previous COVID-lockdowns. A battery plant run by Toyota and CATL has already been impacted and investors might be concerned that Nio’s production will once again be affected as well. Nio hosts its annual general meeting on August 25th.

NIO stock price

EV stocks were trending lower once again following Wednesday’s hawkish comments from the Fed. Tesla (NASDAQ:TSLA) dipped lower by 0.37%, while Rivian (NASDAQ:RIVN), Lucid (NASDAQ:LCID), and XPeng (NYSE:XPEV) were also trading in the red. Tesla’s stock split closed on Wednesday and will be official as of August 25th.

Like this article? Help us with some feedback by answering this survey:

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Stocks Reporter

FXStreet

EUR/USD recovers above 1.1600 as focus shifts to US data

EUR/USD stages a modest rebound and trades in positive territory above 1.1600 in the European session on Wednesday. Improving risk sentiment makes it difficult for the US Dollar to preserve its strength and helps the pair edge higher as focus shifts to key US data releases.

GBP/USD climbs above 1.3350 on improving risk mood

GBP/USD gains traction and advances toward 1.3400 on Wednesday. Although there are no headlines pointing to a de-escalation in the Middle East conflict, the modest recovery seen in US stock index futures limit the USD's gains and help the pair hold its ground.

Gold rebounds toward $5,200 as USD retreats

Gold maintains its offered tone through European session on Wednesday and climbs to the $5,200 region. The downward correction seen in the US Dollar and the ongoing crsis in the Middle East seem to be allowing XAU/USD to preserve its recovery momentum.

ADP Employment Report set to signal stronger February jobs growth, little effect on Fed outlook

The Automatic Data Processing (ADP) Research Institute will release its monthly report on private-sector job creation for February on Wednesday. The so-called ADP Employment Change report is expected to show that the United States private sector added 50K new positions in the month, following the 22K gained in January.

Asian stocks fall as South Korea’s KOSPI slumps over 10%

Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%. South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.

Solana Price Forecast: SOL consolidation near resistance as ETF inflows offer mild support

Solana price is facing slight rejection as it approaches the upper boundary of the consolidation range at around $88 on Wednesday. Institutional demand is strengthening as spot Exchange Traded Funds recorded two consecutive inflows so far this week.