• NYSE: NIO fell by 3.31% during Wednesday’s trading session. 
  • Morgan Stanley cautions investors about slow delivery growth in January. 
  • The EV sector falls further as the NASDAQ reaches correction territory.

UPDATE, January 21: NIO shares closed up 1.75% on Thursday at $29.13 on news that the Chinese government planned to increase infrastructure spending and cut interest rates. This helped NIO perform better compared to US EV producers, which mostly followed the NASDAQ lower. Rivian (RIVN) dropped 6.3%, and Lucid Group dropped 3.3%. NIO is trading 0.4% lower in Friday's premarket.

NYSE: NIO hit its lowest price level so far in 2022 on Wednesday, and according to a major Wall Street analyst, things could continue to look worse for the company. Shares of Nio fell by a further 3.31% and closed the volatile day at $28.63. It has been doom and gloom for Nio shareholders so far this year, as the stock is now 14.5% off of its closing price from 2021. Nio isn’t alone in this pain either as the NASDAQ index fell a further 1.15% as it officially entered correction territory following a 10% drop from its recent all-time highs. 

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Adding salt to the wound of Nio investors on Wednesday was Morgan Stanley’s cautionary words for the company’s January deliveries. The firm stated that the first month or two of the year have traditionally been slow for Chinese EV makers, due to the Chinese New Year Holidays. Adding to this has been recent lockdowns in China due to the spread of the Omicron variant. Perhaps the first delivery numbers of 2022 won’t be as impressive as the previous few months, so Morgan Stanley is preparing Nio shareholders for some potential further downside in the stock price. 

NIO stock price

NIO Stock

Wednesday saw another brutal day for Nio’s peers as the EV sector saw continued pressure. Shares of Tesla (NASDAQ: TSLA) closed the session below $1,000, while Rivian (NASDAQ: RIVN) continued to trade well below its IPO price from November. XPeng (NYSE: XPEV) and Li Auto (NASDAQ: LI) fell by 7.44% and 3.97% respectively, while Lucid Group (NASDAQ: LCID) was one of the lone EV stocks that finished the day in the green.

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