- NYSE:NIO posts a modest advance on Monday amid tepid optimism.
- EV Stocks erase gains on Friday as markets pull back.
- Volskwagen’s CEO is stepping down at the end of August.
Update: Despite a negative close on the Nasdaq Composite Index (NASDAQ), shares of NIO Inc. started the week on a positive footing on Monday. The Chinese Electric Vehicle (EV) maker settled the day 0.47% higher at $19.33, staging a modest comeback from six-week lows of $18.82. Investors, however, remained unnerved ahead of the 75 bps Fed rate hike announcement this week and earnings from tech giants Apple Inc and Alphabet Inc. Global economic slowdown worries and the recent rally in Nasdaq keep traders on the sidelines. Further, markets remain cautious ahead of the planned talks between US President Joe Biden and his Chinese counterpart Xi Jinping later this week.
NYSE:NIO saw its stock tumble on Friday, leading the Chinese EV maker to post an 8.2% loss for the trading week. Shares of Nio tanked by 6.96 and closed the trading session at $19.24, as the stock fell below the key $20.00 price level. After markets rallied earlier in the week, Friday’s sell off looks like it was indeed just another bear market rally. All three major indices closed lower on Friday, with the Dow Jones sinking by 137 basis points, the S&P 500 was down by 0.93%, and the NASDAQ posted a loss of 1.87% during the session.
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EV stocks were hit particularly hard on Friday with the exception of Tesla (NASDAQ:TSLA) which managed to eke out a 0.20% gain. Tesla investors were clearly still impressed with the EV maker’s second quarter earnings report from Wednesday. It was reported that Thursday’s performance by Tesla added $100 billion back to its market cap, and cost short sellers over $1 billion on their short positions. Other stocks that were trading lower alongside Nio included Rivan (NASDAQ:RIVN), Lucid (NASDAQ:LCID), and Chinese domestic rivals XPeng (NYSE:XPEV) and Li Auto (NASDAQ:LI).
NIO stock forecast
In a surprising announcement, Volkaswagen CEO Herbert Diess is stepping down from the company at the end of August. Diess is credited for navigating the Dieselgate scandal and paved the way for VW’s global electric vehicle presence. Diess will be succeeded by Porsche CEO Oliver Blume as of September 1st.
Previous updates
Update: NIO stock changed course on Monday and posted a modest 0.39% advance, settling at $19.32 per share. Wall Street held ground as investors hope the US Federal Reserve will do as planned and hike rates by 75 bps, refraining from tightening further. Stocks were also backed by encouraging earnings reports, although several big names will be reporting in the next few days. The Dow Jones Industrial Average added 90 points, but the S&P 500 ended up losing 6 points, after spending most of the day in the green. Finally, the Nasdaq Composite was the worst performer, shedding 51 points or 0.43%
Update: Nio stock is down 1.7% to begin the week and is trading near $18.92 at the end of Monday's first hour of the regular session. Shares have richoted between $18.78 and $19.50 so far in the session. The stock is down in line with the Nasdaq but also due to weakness among Chinese equities. The CEO and CFO of embattled real estate giant Evergrande Group resigned, and the Chinese government announced new controversial policies to deal with the flailing real estate sector. About 4,000 contracts for the $18 put strike price expiring this Friday have exchanged hands this morning. The last price for the put contract was $0.36 per share.
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