NIO Stock Price Forecast: Nio extends slide during another ugly day for the EV sector

NYSE:NIO dips by 6.99% as broader growth sector sell off continues to hit investors.
Nio is not the only EV company to get hammered on Thursday.
The electric vehicle sector has been hit hard in 2021 but the long-term outlook is bright according to analysts.

Stocks Reporter FXStreet

NYSE:NIO emerged as one of the top stocks for growth investors to accumulate during 2020, but 2021 has not been quite as rosy for the China-based company. On Thursday, the slide continued for NIO as it dropped 6.99% to close the trading session at $41.63. Shares are now trading well below the 50-day moving average and are falling close to the 200-day moving average price of $40.94. All in all, NIO is down 22% since the start of 2021, and 37% off of its all-time high price of $66.99 set in late January.

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But NIO has not been the only electric vehicle maker to be hit by the 2021 price correction. On Thursday, industry leader Tesla (NASDAQ:TSLA) fell by 6.93%, XPeng (NYSE:XPEV) fell by 3.13%, and Li Auto (NASDAQ:LI) fell by 1.45%. Tesla itself has seen a 10% drop since the start of the year, and has experienced increased volatility during the recent tech industry sell off. Another stock that has struggled is CCIV (NYSE:CCIV) or the SPAC IPO that will bring Lucid Motors to the public market. Thursday saw CCIV drop 8.81% itself, as the hype around Lucid continues to fall.

NIO Stock news

Long term investors may find this dip as a nice buying opportunity for NIO, as it should be noted that Wall Street analysts remain bullish. There is a median 12-month price target of $57.57, and some analysts are even more optimistic than that. NIO has plenty of advancements coming down the pipe including four new vehicles set to launch in 2022, along with ultra-fast charging, and a $100 per month autonomous driving subscription.

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Stocks Reporter

FXStreet

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