- 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.
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
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
AUD/USD hovers around 0.6500 amid light trading, ahead of US GDP
AUD/USD is trading close to 0.6500 in Asian trading on Thursday, lacking a clear directional impetus amid an Anzac Day holiday in Australia. Meanwhile, traders stay cautious due ti risk-aversion and ahead of the key US Q1 GDP release.
USD/JPY finds its highest bids since 1990, near 155.50
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, testing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming Japanese intervention risks. Focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold price treads water near $2,320, awaits US GDP data
Gold price recovers losses but keeps its range near $2,320 early Thursday. Renewed weakness in the US Dollar and the US Treasury yields allow Gold buyers to breathe a sigh of relief. Gold price stays vulnerable amid Middle East de-escalation, awaiting US Q1 GDP data.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Meta Platforms Earnings: META sinks 10% on lower Q2 revenue guidance Premium
This must be "opposites" week. While Doppelganger Tesla rode horrible misses on Tuesday to a double-digit rally, Meta Platforms produced impressive beats above Wall Street consensus after the close on Wednesday, only to watch the share price collapse by nearly 10%.