NIO Stock Price: Racing higher as Elon Musk asks for competition? Small electric carmaker may gain big

NIO's stock price has been hesitating under $6.
Tesla's Elon Musk called for competition, albeit in another context.
A better rating from Goldman Sachs and a shift toward cars may further boost the stock.

Yohay Elam FXStreet

Can NIO, an electric car-maker, surge to new highs? The Chinese carmaker is little-known in a world dominated by Elon Musk's Tesla, but the electrical car celebrity, also known for SpaceX and anti-lockdown politics, may have room to run.

Musk complained about the lack of competition, referring to another billionaire VIP, Jeff Bezos of Amazon. He vented his anger at Amazon's downing of a book he wrote before the online retail behemoth reinstated that book. Nevertheless, Musk's comment opens the door for much-needed competition in the EV space.

Fei Fang, an analyst with Goldman Sachs, upgraded his recommendation for NIO, setting a target of $6.40. He cited an improving burn-rate for the firm and suggested it may break even once it hits the 10K car / month production milestone.

Sales are 30% up on the year despite Elon Musk's high profile and price cuts enacted by Tesla. Moreover, Fang states that Musk's firm lost its prestige gap by lowering the price, making consumers indifferent.

Citizens across the world have enjoyed the cleaner air that was coronavirus' silver lining. That inspires governments, especially in Europe, to expand their shift toward electric cars. As Washington and Beijing grow further apart, China and the EU may get closer, potentially opening a market for NIO.

NYSE: NIO forecast

The next move higher in NIO's stock price depends on breaking above $6 which is a psychologically significant level, or more precisely, above $6.20, which is the 52-week high. The low in the past 52 weeks was $1.19, so the carmaker is now work more than five times its value at the lows.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

GBP/USD edges lower below 1.3650, with eyes on US PCE data

GBP/USD trades with a negative bias below 1.3650 in the European session on Wednesday, eroding a part of the previous day's strong gains. The pair, however, remains within striking distance of a six-month top, set last Friday, as traders keenly await the release of the US Personal Consumption Expenditures (PCE) Price Index data for a fresh impetus.

EUR/USD holds lower ground near 1.1650 ahead of key US data

EUR/USD is holding lower ground toward 1.1650 in Wednesday's European session. The US Dollar is recovering modestly amid profit-taking and Middle East uncertainty. US inflation, tracked by the PCE, and another revision of Q2 GDP data should keep investors entertained on Wednesday.

Gold remains depressed below $4,650 on firmer USD; looks to US PCE for Fed rate outlook

Gold sticks to modest losses below $4,650 heading into the European session, though it lacks bearish conviction and remains confined within the previous day's broader range. The US Dollar regains positive traction amid some repositioning ahead of the US Personal Consumption Expenditures Price Index and is seen as weighing on the commodity. Adding to this, Federal Reserve Chair Kevin Warsh's remarks at the Jackson Hole Symposium on Friday might offer more cues about the interest rate path.

Dogecoin, Shiba Inu, Pepe: Profit-taking cools last week’s rally

Meme coins, including Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), are losing their bullish momentum after last week’s double-digit gains. Facing downside pressure amid profit-taking, DOGE and PEPE risk further decline while SHIB holds at a support level.

America’s self‑inflicted trade wound

I’m conflicted about the trade war that the U.S. has started with Canada. Let’s be clear: any representation that Canada has been taking unfair advantage of the U.S. or that they have been treating us badly for years is a bogus characterization. In reality, the shoe is on the other foot. It’s the U.S. that has been behaving badly.

Canada hits US goods with tariffs; The rate market sees a problem

On September 8, Canada begins charging its own importers 15%, 25% and 50% on roughly 700 lines of American goods. The measure is billed as dollar for dollar, and on the arithmetic of covered trade it is. What it is not is a tax on the United States.