NIO Stock Forecast: Nio down another 8% as Nasdaq, EVs plunge

NYSE: NIO fell by 5.51% during Thursday’s trading session.
The EV sector tumbles as Omicron fears weigh on businesses.
Nio received another price upgrade from Morgan Stanley.

Stocks Reporter FXStreet

UPDATE: NIO stock cratered 8.6% to $33.08 on Friday as the Nasdaq witnessed a system-wide sell-off. Xpeng (XPEV) was down 8%, while sector leader Tesla (TSLA) dropped more than 3% after CEO Elon Musk continued selling shares.

NYSE: NIO extended its recent slide to four straight sessions on Thursday, despite the broader markets rallying from Wednesday’s sell off. Shares of Nio fell by 5.51% and closed the trading session at $36.20.This week’s roller coaster ride continued on Thursday as the Dow Jones rebounded by 617 basis points, and the S&P 500 and the NASDAQ climbed by 1.42% and 0.83% respectively. The markets rallied during the session despite the Omicron variant being detected across two more states. President Biden issued a statement that he is not in favor of further lockdowns or vaccine mandates in America, but there is still growing concern that the new variant may quickly spread across the country.

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The electric vehicle sector was left behind on Thursday, as growth stocks continued to have their valuations hammered down. Nio’s domestic rivals XPeng (NYSE: XPEV) and Li Auto (NASDAQ: LI) saw their stocks plummet by 5.57% and 3.39% respectively. Stateside, all of the big names were trading lower as well, with Tesla (NASDAQ:TSLA), Lucid Group (NASDAQ: LCID), and Rivian (NASDAQ: RIVN) all closing the day below water. Their are rising fears that global supply chains and the ongoing chip shortage may be extended if the latest coronavirus variant continues to do damage.

NIO stock price

Nio investors who have been frustrated with the stock’s performance this year received another shot of good news on Thursday. Morgan Stanley analyst Tim Hsiao reiterated his buy rating for Nio’s stock and raised his price target from $64 to $66. Hsiao cited the recent rollout of the ET7 model, as well as the upcoming ET5 model as proof that Nio is successfully expanding its market, and that better days lie ahead for the stock.

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FXStreet

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