NIO Stock Forecast: Nio Inc erases early morning gains for the second straight day

NYSE: NIO saw its early morning breakout thwarted for the second straight session due to downward selling pressure once again hitting growth stocks. On Wednesday, shares of NIO dropped a further 5.43% and closed the trading day at $12.71. The broader markets looked to be heading for positive territory before a higher than expected inflation report stopped stocks in their tracks. All three major indices backtracked into the red by the closing bell. The Dow Jones lost 326 basis points, the S&P 500 hit a new 2022 low after falling 1.65%, and the NASDAQ tumbled by 3.18%. 

---

Stay up to speed with hot stocks' news!

---

Nio made a promising announcement on Wednesday that should dispel some of the recent fears over the ADR delisting from the New York Stock Exchange. Its long-awaited secondary listing will be trading in Singapore by the end of May, according to the company.  The key piece of information is that the shares in Singapore will be fully fungible with share trading on Wall Street. This is a sign that Nio believes it will likely continue to trade on the US exchange. 

NIO stock price

According to Tesla (NASDAQ: TSLA) CEO Elon Musk, the Chinese government is rapidly removing the lockdown mandates in the country. This is a positive sign for EV makers who have seen production slowed, if not halted altogether, from the recent lockdowns. Tesla has since delivered its first shipment of vehicles from the Shanghai GigaFactory since March. This means that Nio is likely to ramp up production in the coming weeks as well.

---