NIO Stock Price and Forecast: Shares crash after selloff on renewed COVID-19 fears and lack of stimulus
- NYSE:NIO drops alongside broader markets as the electric vehicle sector continues to get pummeled.
- Low chance of a stimulus package before November 3rd triggers volatile stocks selloff.
- With another wave of COVID-19 in Europe, NIO’s expansion to the continent may be delayed.
NYSE:NIO has finally slowed down its torrid pace from earlier this year as shares tumbled on Monday to the tune of 4.23% amidst a broader market selloff as the global economy braces itself for another wave of COVID-19. The NASDAQ shed 189 basis points, while the Dow Jones was the biggest loser on the day, dropping over 650 basis points as the fading hopes of a stimulus package from the American government sent investors packing. In times of uncertainty, it is common for volatile stocks to be sold off first as investors seek stability until the markets settle.
NIO was not the only electric vehicle company to struggle as Tesla (NASDAQ:TSLA), Workhorse (NASDAQ:WKHS), Hyliion (NYSE:HYLN), Nikola (NASDAQ:NKLA), and Xpeng (NYSE:XPEV) all fell significantly as investors shed some profits from each company’s run-up from earlier this year. Part of NIO’s outlook in 2021 includes expanding into Europe, although a spike in coronavirus cases may slow that down if the status worsens.
NIO stock news
As the chances of government stimulus continue to shrink ahead of the November 3rd federal election, investors can expect to see continued volatility in the markets, especially sectors like EV-automakers. While NIO should still see a positive end to the year with its quarterly earnings call presumably at some point in mid-November, as well as NIO Day in January, NIO investors may have to put up with some more short-term pain until things begin to stabilize.
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Stocks Reporter
FXStreet
