NIO Stock News: Nio Inc extends slump on rising COVID lockdowns in China

NYSE:NIO extended its slide on Tuesday as investors could be showing some bearish sentiment ahead of its earnings call on Wednesday. Shares of Nio dropped by a further 3.50% and closed the trading session at a price of $17.11. The Labor Day weekend did little to quell the bearish sentiment on the markets as all three major avengers resumed their slide on Tuesday. Further economic data from the August ISM data showed that the US economy is indeed in a stronger position than many believe. Overall the Dow Jones lost 173 basis points, the S&P 500 dropped by 0.41%, and the NASDAQ posted a loss of 0.74% during the session.

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As if the global supply chain issues and macroeconomic situation wasn’t bad enough, China is now dealing with Mother Nature as well. Following the ongoing droughts that have affected regions of China and caused some automotive manufacturing to pause, there was a magnitude 6.8 earthquake that hit Sichuan on Tuesday. The disasters have added to the already stressed country following continued lockdowns that have stemmed from recent outbreaks of the novel coronavirus. Some reports estimate that over 65 million Chinese residents are back in lockdown protocols.

NIO stock forecast

On Wednesday, before the markets open Nio will report its second quarter earnings. The consensus forecast for the quarter seems to be an earnings loss of about $0.16 per share and a high single-digit year over year growth in revenues. Most will be looking to Nio’s guidance for the third quarter and beyond as the true indication of where the company stands.

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