• NIO sheds 6.6% on Thursday, as fear took over financial markets.
  • Tesla is also down as EV names suffer this week.
  • NIO stock has been falling since earnings results last week.

Update August 19: NIO (NYSE: NIO) settled at $36.29, a fresh multi-month low and down 6.61% for the day. Financial markets were dominated by concerns about US tapering, which weighed on most global indexes. Wall Street managed to bounce from intraday lows, with the S&P and the Nasdaq posting modest intraday gains. Nevertheless, NIO settled just a few cents above its daily low of $36.25. On a daily basis, technical readings point for another leg south as the bearish momentum remains firmly in place, with room to test the next relevant static support area at $34.80. 

Previous update: NIO is down again on Thursday as the EV maker suffers along with most of the rest of the sector it must be said. Tesla gave the sector some hope on Wednesday with a solid bounce but that too is down today. NIO has broken the key support at $38.66 and now heads to our first support zone at $32. We prefer sub $30 though and the zone around $28 is stronger on the volume profile. 

NIO (NYSE: NIO) has kicked off Wednesday's trading session with an increase of some 1.8% to $38.72  at the time of writing. Shares of the Chinese electric vehicle maker are still below the $44-46 levels it traded at before reports of a fatal car crash sent its shares tumbling. The current move higher can, therefore, be described as a "dead-cat bounce" rather than anything else. It is essential to note that also market leader Tesla (NASDAQ: TSLA) is under pressure due to a similar issue. 

Editor's Note: A previous version of this article misstated NIO's denial regarding the accident. CnEVPost reported that NIO denied that a company technician redacted the car data and not anything else. 

NIO shares are down again in Monday's premarket as some sad news hits the stock in relation to a driver fatality. The Securities Times, a Chinese publication, is reporting that Lin Wenqin, a Chinese entrepreneur, died while driving a NIO vehicle on Friday. According to CNEVPOST. a Chinese electric vehicle website, NIO denied that a technician redacted the vehicle data after the accident. The firm also explained that its Navigation On Pilot (NOP) is not an autopilot mechanism. Benzinga has also covered the story, saying the news is leading to more calls for self-driving safety regulations.

NIO stock has been hit hard by the news as investors worry over this emerging technology and autopilot capability. It is not just NIO that autopilot concerns have been limited to with other manufacturers also having issues with such a new technology and drivers too needing to stay alert as autopilot is not the fully autonomous version that aircraft use. NIO shares are lower by over 4% in Monday's premarket on the back of the sad news. The shares are trading below the psychological $40 level at $39.15.

NIO key statistics

Market Cap $69 billion
Enterprise Value $56.1 billion
Price/Earnings (P/E) -110

Price/Book

16
Price/Sales 22
Gross Margin 15%
Net Margin -38%
EBITDA  
52 week low $10.46
52 week high $66.99
Average Wall Street rating and price target

BUY $57.46

NIO stock forecast

NIO remains in a bearish downtrend as we have been saying for the last number of weeks. The trend is a classic series of lower lows and lower highs with $47.39 the upside pivot to break to set a higher high and end the trend. To the downside, holding the pivot at $38.66 would be the first sign that bulls may be defending against a lower low – a small bullish sign. 

Breaking $38.66 opens the door for a move to our support zone at $32, which is where NIO stock stabilized and took off from back in May. Our strong support zone though is at $28 as the volume is greater here. The Moving Average Convergence Divergence (MACD) has also crossed into bearish territory. 

Previous updates

Update August 17: NIO shed 1.37% on Tuesday, ending the day at $38.10 per share, its lowest settlement since late May. Risk aversion added to the sour tone of the share, as softer-than-anticipated US Retail Sales dented the market's mood. All US indexes closed in the red, with the DJIA down 282 points and the Nasdaq Composite shedding 137 points. The S&P was down 0.71%. From a technical point of view, further slides could be expected as long as the share remains below 38.67, the low set in July.

 

 

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD remains pressured below 0.6900 despite upbeat China PMI

AUD/USD remains pressured below 0.6900 despite upbeat China PMI

AUD/USD is off the lows but remains pressured below 0.6900 on a big beat on the Chinese Caixin Manufacturing PMI. The US dollar attempts a recovery amid risk-off trading, ahead of US ISM. Strong Aussie PMI, increasing odds of another 50 bps RBA rate hike fails to recall bulls. 

AUD/USD News

USD/JPY sinking towards overnight lows near 135.50

USD/JPY sinking towards overnight lows near 135.50

USD/JPY bears move in and the price heads towards overnight lows. The yen regathered below the 24-year peak of 137 vs. the dollar although the gap between a hawkish Federal Reserve and a dovish Bank of Japan continues to weigh heavily on the Japanese currency. 

USD/JPY News

Gold struggles to defend $1,800 as DXY rebounds ahead of US ISM PMI

Gold struggles to defend $1,800 as DXY rebounds ahead of US ISM PMI

Gold Price remains pressured around the lowest levels in seven weeks after breaking the key support. US Dollar regains upside momentum, as recession woes favor the greenback. US ISM Manufacturing PMI for June could direct market moves.

Gold News

Will the ApeCoin price fall to $2 this summer

Will the ApeCoin price fall to $2 this summer

ApeCoin price shows incoming sell-off signals on the final day of June. It is best to wait for a breach of the invalidation level before counter-trend trading the Ethereum-based NFT Token. Invalidation of the bearish downtrend is a breach above $6.15.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures