NIO Stock Forecast: Nio Inc rebounds 1% on risk recovery, encouraging fundamentals

  • NYSE:NIO recovers on Monday, as cooling fears helped Wall Street to bounce.
  • The company completed the building of its first power station in Norway.
  • The EV sector plummeted on Friday despite good news from Tesla.

Update, November 30: NYSE: NIO rebounded 1.18% from multi-day lows to recapture the $40 mark on Monday, tracking the renewed upturn in the broader Wall Street indices. The improving market mood, amid easing fears over the impact of the new Omicron covid variant on the global economic recovery, aided the relief rally in the stock price. US President Biden also added to the optimism, citing new lockdowns are not necessary. The Electric Vehicle (EV) manufacturer also cheered the news that the company completed the building of its first power station in Norway after selling its ES8 models in the country from October 1. The EV company is making its presence felt gradually in the European market.

Stay up to speed with hot stocks' news!

The Chinese government continued its year of regulatory crackdowns on Friday. The CCP requested that ride-hailing company DiDi (NYSE:DIDI) delist itself from the US markets after the government has accused Didi of leaking sensitive data about Chinese citizens. It’s certainly not the first time that Didi and the CCP have clashed since the company went public, and investors in Chinese companies are certainly getting more nervous as there seems to be no end in sight to the CCP’s wrath.

NIO stock price

NIO Stock

The entire markets were hammered on Friday, but EV stocks took an especially hard hit. Tesla (NASDAQ:TSLA) dropped by 3.05% despite announcing it would be investing $200 million into upgrading its Shanghai GigaFactory. Other EV stocks that were trading lower included Lucid Group (NASDAQ:LCID), Rivian (NASDAQ:RIVN), XPeng (NYSE:XPEV), and Li Auto (NASDAQ:LI) which is reporting its third-quarter financial results on Monday morning.

Previous updates

Update: NYSE:NIO is up almost 1% heading into Wall Street's close, trading at $40.36 per share. US indexes bounced after Friday's collapse, as investors digested fresh news related to the Omicron coronavirus variant. US President Joe Biden said that lockdowns are off the table as there would be no need if people get vaccinated and wear a mask. Regarding additional travel curbs, Biden said none are needed for now. Wall Street took note of his comments, with the DJIA up roughly 300 points and the Nasdaq Composite up by 315 points. The NYSE is up 0.58% at the time being. 

Update: NYSE:NIO continued its volatile week on Friday and despite recording two positives and two negative sessions, the stock managed to close the week 3.63% higher. Shares of Nio fell by 3.45% during Friday’s tumultuous session and closed the trading day at $39.99. It was a nightmare close to the week on Friday as global markets tumbled on the news of the Omicron Variant of COVID-19 rapidly spreading throughout South Africa. The Dow Jones had its worst day of 2021, dropping by over 900 basis points, while the NASDAQ and S&P 500 were both down over 2.0% each. The VIX, which measures market volatility, surged by over 54% on Friday, to hit the highest levels in over six months.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD struggles to rebound, holds near 1.1150 after US data

EUR/USD trades around 1.1150 in the early American session on Friday as investors assess the latest inflation data from the US. According to the US Bureau of Economic Analysis, Core PCE Price Index rose to 4.9% on a yearly basis in December from 4.7% in November, surpassing the market expectation of 4.8%. 


GBP/USD clings to small gains above 1.3400 on mixed US data

GBP/USD posts modest daily gains slightly above 1.3400 on Friday as the dollar rally loses steam. The data from the US showed that the core PCE inflation edged higher to 4.9% in December. On a negative note, Personal Spending contracted by 0.6% on a monthly basis.


Gold recovers modestly after US data, stays below $1,800

Gold managed to stage a rebound from the multi-week low it set below $1,780 but continues to trade deep in the red near $1,790. The benchmark 10-year US Treasury bond yield is rising more than 1% on the day after US data, limiting XAU/USD's recovery.

Gold News

Bitcoin Weekly Forecast: Federal Reserve cannot tame BTC’s uptrend

Bitcoin has experienced some significant losses over the past few weeks, with a more dramatic drop occurring this week after the Fed's decision was announced. As losses have extended and BTC has entered into the $30,000 zone, concerns regarding Bitcoin being in a bear market have increased.

Read more

Apple share price set to rise after another record quarter

With the Nasdaq closing at its lowest level in seven months yesterday, the Apple share price has also found itself on the end of the recent weakness in tech shares, down over 12% from its record highs in early January.

Read more