- NYSE: NIO has dropped by 3.28% on Wednesday, but remains close to the highs.
- NIO Inc reported upbeat earnings and an encouraging outlook moving forward.
- Uncertainty about the Biden administration's approach toward China may be weighing on the EV-maker's value.
Update: NYSE: NIO is rising by nearly 3% at the time of writing on Friday, edging closer to $50. Shares are on an upswing. Analysts are becoming more bullish on Nio Inc.
Are investors looking in the wrong direction? NIO Inc (NYSE: NIO) closed Wednesday's trading session some 3.28% lower despite robust earnings. The Shanghai-based electric vehicle maker may have been overshadowed by a smaller American one. Workhorse Group Inc (NASDAQ: WKHS) received a bullish recommendation from an analyst and has shot higher.
NIO stock news
Nevertheless, there are reasons to cheer NIO's results. The EV producer's quarterly loss dropped to around $154 million, better than expected, paving the way for profitability down the line. The adjusted loss, excluding several items, came at $147 million or 12 cents per share.
More importantly, Nio Inc's revenues are on an upward trajectory, jumping by 146% to the devilish number of $666.6 million, marginally above estimates for $664.
Looking to the future, the automobile manufacturer expects to sell up to 17,000 vehicles in the fourth quarter, up from delivering 12,206 in the three months ending in September. CEO William Bin Li is likely content with the surge from delivering under 5,000 cars back in the third quarter of 2019.
What could be holding NYSE: NIO back? Apart from the competition with other electric vehicle makers such as Elon Musk's Tesla (NASDAQ: TSLA), Nio may be suffering from the Sino-American rivalry. While outgoing President Donald Trump has maintained a hard line against Beijing, his successor Joe Biden may muster a broader international coalition that could prove more effective in containing China.
The President-elect aims to strengthen ties with Europe and other countries, potentially working together to improve the West's playing field against the world's second-largest economy. That would, in theory, curb Nio's ability to compete with American rivals. Nevertheless, the upbeat financial results may have a greater say in determining NYSE: NIO's trajectory.
At the current price of $45.06, shares still have room to run ahead of the 52-week high of $54.20. Topping the psychologically significant level of $50 is the first hurdle. NIO has support at $41.55, which was November's low.
More What you need to know about the dollar in the post-vaccine announcement world
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
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.