NIO Stock Forecast: NIO Inc struggles around $40 despite the rebound

NYSE:NIO settles once again below $40, despite reaching fresh multi-week highs.
Nio is looking to bulk up its fleet with a couple of new vehicle models.
Nio rival XPeng is inching closer to rolling out flying cars.

Stocks Reporter FXStreet

Update October 22: NYSE: NIO stalled its two-day corrective pullback and rebounded 0.48% on Thursday, although failed to recapture the $40 mark on the close. The NIO share price finished at $39.97, on track to book a third straight weekly gain. The Wall Street indices closed near record highs, lending support to NIO’s rebound. Meanwhile, technically, NIO stock price appears bullish, with more gains in the offing for the EV manufacturer.

NYSE:NIO extended its gain on Tuesday and the Chinese EV maker stock is now up nearly 12% over the past five days. Shares of Nio gained 1.06% on Tuesday and closed the trading session at $40.03 as the stock managed to reclaim the $40.00 price level for the first time since the first week of September. All three major indices finished Tuesday in the green as the S&P 500 closed higher for the fifth consecutive session following a strong start to the third quarter earnings season. The NASDAQ continued its recent surge with impressive Netflix (NASDAQ:NFLX) earnings after the close and the much anticipated Tesla (NASDAQ:TSLA) earnings on Wednesday.

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Nio bulls are preparing for the company’s fifth annual Nio Day Event which will take place on December 18th. Nio is looking to beef up its existing lineup of vehicles and rumors are that it will unveil details about its latest sedan and roadster models. Nio has already committed to begin delivering its flagship ET7 vehicle in Germany at some point in 2022, so do not be surprised if we do receive some news about continued European expansion at the event.

NIO stock price

The Chinese EV industry is heating up as Nio rival, and AliBaba (NYSE:BABA)-backed XPeng (NYSE:XPEV) expects domestic EV sales to rise by as much as 35% by 2025. XPeng also had an unusual announcement on Tuesday as it has raised over $500 million of capital for its subsidiary HT Aero, which is a company that makes flying cars. XPeng hopes to have its vehicles hit the roads, or the air, by 2024.

Previous updates

Update: NYSE: NIO ended Thursday at $ 39.97 per share, up a modest 0.48% on Thursday. Wall Street spent most of the day in the red, although major indexes got to bounce ahead of the close, ending the day mixed. The DJIA closed in the red, down 7 points, while the NYSE Composite was the worst performer, shedding 37 points or 0.22%. The S&P 500 and the Nasdaq managed to post daily gains.

Update: NYSE NIO has started Thursday trading with a bang, quickly recovering the psychological $40 mark and is nearing the six-week highs of $40.90 set on Monday. NIO lost ground both on Tuesday and Wednesday, when shedding 0.62% to settle at the end of the trading sp 500day at $39.78. NIO is joining the stock market party, with S&P500 back on the green for the day after setting new all-time highs on Wednesday, with the Nasdaq and the Dow Jones also opening the Wall Street session with big rallies.

Update: NYSE:NIO was unable to retain early gains and finished the day down 0.62% at $39.78 per share. The slide seems corrective after the share added roughly 12% in the previous sessions. Meanwhile, the Dow Jones Industrial Average and the S&P 500 flirted with record highs, boosted by solid earnings reports. The NYSE added 108 points, up 0.64%, while the Nasdaq Composite was the worst performer, ending the day in the red after shedding 7 points.

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Stocks Reporter

FXStreet

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