NIO Stock Forecast: Nio Inc drops lower as investors digest slowing delivery growth

NYSE: NIO fell by 4.35% during Wednesday’s trading session.
Growth weakness returns as the EV sector tumbles.
Nio is preparing to enter Denmark by the end of 2022.

Stocks Reporter FXStreet

NYSE: NIO could not hold on to its tentative gains from Tuesday’s session after reporting its January vehicle deliveries. On Wednesday, shares of Nio fell by 4.35% and closed the trading session at $23.76. The markets showed hesitation on Wednesday despite all three major indices closing the day in the green for the third straight session. The upcoming January jobs report on Friday could bring some more short-term turbulence to the markets. The S&P 500 led the way gaining 0.94%, while the Dow Jones added 224 basis points and the NASDAQ closed higher by 0.50%.

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Despite all three major indices finishing the session in the green, it was a volatile session for most growth names. The EV sector slumped again as Nio and rival XPeng (NYSE: XPEV) both dipped following the delivery reports on Tuesday. Li Auto (NASDAQ: LI) managed to eke out a small gain but was trading lower after the markets closed. It was anticipated that deliveries and sales would drop in January, as the Chinese government reduced consumer subsidies and the Lunar New Year holiday has historically caused the Chinese market to lag during the month.

NIO stock price

Nio did announce that it was making preparations to enter the Danish market by the end of 2022. The move makes sense as Nio is already selling in the EV hotbed of Norway, and is planning to also launch in Sweden this year. Geographically all three Scandinavian countries would be an easy win for Nio as it prepares to conquer larger European markets like Germany where established automakers already have the inside track on the EV market.

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Stocks Reporter

FXStreet

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