- NYSE:NIO fell by 5.08% on Wednesday as the markets hit rough waters once again.
- NIO announces a new agreement with CATL to manufacture new entry-level vehicles.
- Investors selloff at the closing bell as the U.S. mulls delisting Chinese companies.
NYSE:NIO appeared to be heading for another green day on Wednesday before the bottom fell out on the markets near the closing bell. The timing coincided with reports of the U.S. Capitol building being overrun by President Trump supporters, as well as other reports of the US Department of Defense mulling a decision to delist some big-name China companies from American exchanges. NIO crashed by 5.08% on the day to close the trading session at $50.50, which is nearly $4.00 lower than where it opened. The decline did not kick in until about an hour before the close of the trading day, although so far NIO has managed to rebound in after-hours trading.
The China-based electric vehicle maker made headlines ahead of its annual NIO Day event by unveiling plans to produce a new entry-level line of vehicles as early as the end of this year. The change in offerings is a contrast to NIO’s luxury line of electric vehicles, especially the new sedan that is being introduced at NIO Day which is said to rival BMW’s 7-Series model. The new vehicles are said to be using CATL as its battery supplier, which will incorporate lithium iron phosphate technology, most famously used by Tesla (NASDAQ:TSLA) in their Model 3.
NIO stock news
Adding to the issues for Nio is the ongoing threat of Chinese companies being delisted with Ali Baba (NYSE:BABA) and Tencent as the latest firms to hit the U.S. government’s radar. Both stocks plummeted near the closing bell on Wednesday, and with all of the unrest currently happening in America, it will be interesting to see how these perform over the next few weeks.
NIO Stock Price and Forecast: Trades flat as Chinese stocks pull back on delisting threats
- NYSE:NIO trims off 0.54% as global markets rebound on Tuesday.
- NIO is the latest company in the electric vehicle sector to report record monthly vehicle sales.
- NIO investors brace themselves for Saturday’s NIO Day event.
NYSE:NIO was one of the big winners in 2020 and became a retail investor darling as the stock gained over 1,550% during the past 52-weeks. On Tuesday, the stock traded flat as it dipped by 0.54% after surging on Monday to start the new trading year. The current price level of $53.15 is now very much within reach of its all-time high price of $57.20, and is well above its 50-day and 200-day moving averages.
Like many of its industry peers, Nio reported a record-setting month in December in terms of vehicle sales as the China-based company delivered 7,007 in total. While these numbers fall short of matching two of its largest domestic rivals in XPeng (NYSE:XPEV) and Li Auto (NASDAQ:LI), the figures do prove that Nio’s efforts to increase monthly production are clearly paying off. It is encouraging for investors to see the month-over-month growth for Nio, even as electric vehicle industry leader Tesla (NASDAQ:TSLA) debuted the Model Y in China, and lowered some of the prices of its vehicles.
There is much anticipation surrounding Nio unveiling its new sedan this Saturday at the company’s annual NIO Day event which should also have updates for shareholders on its autonomous driving technology. Excitement over the new technology in the luxury sedan is building, including the new battery technology that could potentially hold a range of over 900 km, as well as Nio’s patented battery swap functionality.
View more information: https://www.fxstreet.com/news/nio-stock-price-and-forecast-trades-flat-as-chinese-stocks-pull-back-on-delisting-threats-202101061108