NIO Stock Price and News: Shares consolidate second plant-related surge
- NYSE:NIO gained 6.83% on Friday as the broader markets rallied into the weekend.
- CEO William Li confirms that construction is underway on the second plant that will double vehicle production.
- Nio finally breaks through its resistance, and the stock looks like it could be ready to return to its previous highs.
Update June 15: Nio Inc (NYSE: NIO) shares have kicked off Tuesday's trading session with a drop of nearly 2% to around $45.70 at the time of writing. Investors in the Chinese electric vehicle maker could be taking profits after the leap related to the announcement that the company is constructing a second manufacturing plant. On its way up, the stock broke above two peaks, one at $42.62 recorded in April, and the second one at $46.03 touched in mid-March. The fundamental reasons for piling onto NIO seem intact. Will bargain-seekers jump on shares in response tot the current retreat?
NYSE:NIO has finally managed to break through the $44 price barrier in a big way, and all it took was a major announcement that could shape the company for years to come. To close the week on Friday, Nio gained 6.83% and ended the day sharply higher at $45.68. Shares broke through the 200-day moving average price of $45.59, and could be on its way to the next resistance level at just under $49.00.
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The main catalyst for Nio’s sudden surge was the confirmation by CEO William Li that the second production plant is already being built in Heifei City, near where Nio is headquartered. This plant is set to redefine Nio’s ability to scale, as it is anticipated that production capacity will double the company’s output to 20,000 vehicles per month. Li stated that Nio believes the plant will be in operation by the third quarter of 2022, which could put Nio ahead of its competition in the Chinese domestic market.
Is NIO a good stock to buy?
Nio’s recent outbreak was long awaited as the stock continued to be rejected at that $44.00 resistance level. Is Nio a good stock to buy? It depends on if you believe the stock can return to its previous levels as it rides this new momentum higher. After gaining nearly 45% during its recent rally, Nio may actually cool off a bit, providing investors a chance to get in before Nio takes the next leg higher.
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Stocks Reporter
FXStreet
