NIO Stock News: Nio slides again with entire EV sector

NIO fell by 4.1% during Wednesday’s trading session.
EV stocks retrace as Tesla falls on Musk’s Twitter bid.
More lockdown news out of China means Nio is not yet out of the woods.

Stocks Reporter FXStreet

UPDATE: Nio stock drooped 5.5% on Thursday to $15.15 on pessimism in the overall market and particularly with EV leader Tesla. TSLA shares were off 1.7% in the first hour of the session on Thursday as shareholders are still dealing with worries that CEO Elon Musk might need to sell more shares to fulfill his obligation of buying Twitter for $44 billion. Recent news suggests that financing partners obtained early in the spring have grown disinterested in the deal after Musk tried his best to get out of it over the past three months. XPeng (XPEV) and Li Auto (LI), competitors in China, are down 4.8% and 9.6%, respectively. The Nasdaq is down 0.7%, and both the S&P 500 and the Dow have performed worse than their tech and growth-heavy rival. This is interesting since it shows that the market stalwarts are giving in even more than the somewhat riskier stocks in the Nasdaq. Several Fed officials released hawkish comments on Thursday that has many would-be bear market bulls having second thoughts.

Nio (NIO) stock erased some of the gains it made during Tuesday’s rally as electric vehicle stocks pulled back during Wednesday trading. Shares of NIO fell by 4.1% and closed the trading session at a price of $16.04. After the best two-day gains for US markets since 2020, all three major indices cooled off on Wednesday as stocks slipped lower into the closing bell. Some better than expected employment data tempered expectations of a near-term Fed pivot. Overall, the Dow Jones lost 42 basis points, while the S&P 500 and the Nasdaq dropped by 0.2% and 0.3%, respectively, during the session.

Nio stock price

Electric vehicles stocks enjoyed a hot start to the month but leveled off on Wednesday. Shares of Tesla (TSLA) dropped by 3.5% as investors weighed CEO Elon Musk’s focus on heading too many companies at the same time. Joining Nio and Tesla in the red were companies like Rivian (RIVN), Lucid (LCID), Canoo (GOEV) and Mullen Automotive (MULN). Ford (F) was one of the only advancing automakers after Morgan Stanley upgraded its rating for the stock to Overweight. Ford also announced it would be raising the price of its F-150 Lightning by $5,000 for the second time in as many months.

While no official new lockdowns have been announced in China, there were videos circulating on social media of the Yunnan airport being locked down due to some new cases in the area. The news is unsettling for Nio investors as the company looked to be moving past any potential lockdowns of production facilities. The fact that the Chinese government is continuing with its zero-covid policy is not great news for Chinese automakers.

NIO stock 5-minute chart for 10/5/22

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Stocks Reporter

FXStreet

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