- NYSE: NIO fell by 3.4% during Tuesday’s trading session.
- Nio announced its entry into Germany last week and a future mass-market line of EVs.
- Chinese consumer spending falls amidst further COVID breakout.
UPDATE: Nio has given up another 1.6% in early trading on Wednesday and is now circling $12.63. The low and high of the session thus far during the morning are $12.56 and $13.45. The Nasdaq is down slightly, while both the S&P 500 and Dow are actually up by a smidge. The premarket saw the release of the Producers Price Index data for September, which showed that headline inflation in the US was still rising on a MoM basis. Despite Nio's move into the German market and the nearly 100% jump in new energy vehicle sales in China YoY in September, Nio has not been doing so well following covid concerns and a US export ban on high-value chips. Competitors Li Auto (LI) and Xpeng (XPEV) are up slightly on Wednesday but not by much.
Nio (NIO) saw its losing streak hit five consecutive days as the Chinese EV maker continues to get hit by rising economic uncertainty in China. On Tuesday, shares of Nio fell by a further 3.4% and closed the trading session at a price of $12.83. It was a tumultuous day of trading on Wall Street as the major averages whipsawed between red and green throughout the session. Investors weighed a warning from the IMF and Thursday’s September CPI report. Overall, the Dow Jones added 0.1%, while the S&P 500 and the Nasdaq dropped lower by 0.7% and 1.1%, respectively, during the session.
Nio stock price
Last week Nio held an event in Berlin, Germany to officially announce its entry into the major automotive market. Not only did Nio reveal a new leasing program for its ET5, ET7 and EL7 vehicles, but the company also unveiled a new mass-market line that it is aiming to have in Europe by 2024. It is not the first time Nio has been connected to a mass-market line of EVs after previously being linked to Chinese EV leader BYD. Any mass market line from Nio will likely debut in China before making its way to Europe.
Another factor weighing on Nio’s stock is slowing consumer demand in its home market of China. As the economy continues to deal with lockdowns from COVID-19 outbreaks, companies like Nio are seeing it impact their sales and production. Shanghai is stepping up its testing, and several other major cities are re-implementing new lockdown measures once again.
NIO 5-minute chart 10/11/22
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.
Recommended content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.