NIO Stock Forecast: Nio sells off for sixth straight session

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.

Stocks Reporter FXStreet

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

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Stocks Reporter

FXStreet

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