NIO Stock Forecast: Nio tumbles as further lockdowns in China cripple ADR stocks
- NYSE: NIO fell by 10.6% during Wednesday’s trading session.
- China continues with its zero-covid policy and issues further restrictions.
- Tesla reported its earnings on Wednesday after the markets closed.
Nio (NIO) plummeted lower and hit a fresh 52-week low as rising concerns over lockdowns in key transportation hubs could once again impact China’s supply chains. On Wednesday, shares of NIO tumbled by 10.6% and closed the trading session at a price of $10.92. Despite another batch of strong earnings reports, stocks pulled back on Wednesday and snapped their two-day winning streak to start the week. 10-year treasury bond yields hit their highest mark since July of 2008, which sent growth sectors into decline. Overall, the Dow Jones fell by 0.3%, the S&P 500 dropped by 0.7%, and the Nasdaq led the way lower with a 0.9% loss.
Nio stock price
There has been more political unrest in China as Beijing reiterated its stance on carrying out its zero-covid policy. This has led to further restrictions and lockdowns being imposed, with fears over central transportation and shipping hubs having a direct impact on Chinese industry and manufacturing. Nio’s domestic rivals were also hit hard as XPeng (XPEV) and Li Auto (LI) fell by 11% and 11.2%, respectively, during the session. Both stocks also hit new 52-week lows alongside Nio on Wednesday.
After the markets closed, Tesla (TSLA) reported its third-quarter earnings with mixed results. The company reported a modest beat on earnings but fell short of revenue estimates. CEO Elon Musk addressed his thoughts on a potential recession and also provided enthusiasm for his looming acquisition of Twitter (TWTR). Shares of TSLA were trading lower in extended trading hours by more than 5% at the time of writing.
NIO 5-minute chart 10/19/22
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FXStreet
