NIO Stock News: Nio sheds over 6% despite the rebound
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CLAIM OFFER- NYSE:NIO stock turned south on Wednesday and shed over 6%.
- There are reports that COVID-19 is surging in Nio’s manufacturing region.
- Nio announces the completion of its 10 millionth battery swap.
Update: NIO stock price reversed the previous day’s gains to hit fresh three-week lows at $20.26 before recovering slightly to settle at $20.83. Despite the rebound, the shares of the Chinese Electric Vehicle (EV) makers lost 6.09% on the day. NIO stock price failed to benefit from the recent recovery seen in the broader Wall Street indices, as investors assess the latest positions churning by several institutional investors, which have recently bought and sold shares of NIO. Besides, the FOMC June meeting’s minutes came in hawkish, as it revealed central bankers’ growing anxiety over inflation and plans to adopt a restrictive policy stance in order to control inflation.
NYSE:NIO started the session well lower as the Chinese EV maker was down by as much as 5% during early morning trading. On Tuesday, shares of Nio managed to rise by 3.84% and closed the trading day at $22.18. It was a remarkable reversal for the stock which rallied alongside the broader markets into the closing bell. The Dow Jones was the lone losing index with a dip of 129 basis points, the S&P 500 inched higher by 0.16%, and the NASDAQ posted a 1.75% gain on the strength of mega-cap tech stocks.
Stay up to speed with hot stocks' news!
What had Nio’s stock trading lower out of the start? There are reports that cases of the novel coronavirus are once again surging in areas of China. Specifically, the Anhui Province which is where Nio’s main production facilities are in the city of Hefei. Nio has already had to deal with production shutdowns due to outbreaks in Shanghai, so another closure to its facilities could mean another potential weak quarter for deliveries. Still, investor concerns were short-lived as the stock managed to erase those losses by the closing bell.
NIO stock forecast
Nio hit another milestone earlier this week as the company announced via its WeChat account that it has completed its 10 millionth battery swap. It’s a notable milestone, especially on the heels of a short report from Grizzly Research that alleged that Nio is inflating its battery swap subscription figures which has a direct impact on its revenues and net income. Still, perhaps this is Nio’s way of silencing the short sellers, as the company continues to hit major milestones for its innovative technology.
Previous updates
Update: NIO stock settled at $20.83, down 6.13% on Wednesday, despite US indexes managing to post modest gains for a second consecutive day. The Dow Jones Industrial Average added 70 points, while the S&P 500 summed 0.36%. The Nasdaq Composite gained 39 points or 0.35%. The US Federal Reserve saved the day, as the FOMC Minutes were as hawkish as expected, but policymakers refrained from hinting at a 100 bps hike and from talking about a potential recession. However, the document showed that officials agreed high inflation warranted restrictive interest rates, and are open to be even more restrictive if inflation persists. Also, the majority of participants saw a downside risk to growth, while judging there was a “significant risk” higher inflation could become entrenched.
Update: Nio shares have shed 6.5% to trade at $20.73 one hour into Wednesday's session. This pessimism is odd, seeing as how the Nasdaq is primarily flat and new vehicle sales figures out of China leave little more to be desired. Figures from June 20 through June 26 show a Chinese vehicle market in rampage mode. Overall, the week saw industry-wide sales 33% higher than the same period one year ago. Electric vehices grew at a much higher pace however. Nio reported sales of 12,961 in June, which amounts to a 60% growth rate YoY. The only negative aspect was that Nio remains behind competitors Li Auto (LI) and Xpeng (XPEV), which sold noticeably more units in June and grew sales at 69% and 133% YoY, respectively.
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- NYSE:NIO stock turned south on Wednesday and shed over 6%.
- There are reports that COVID-19 is surging in Nio’s manufacturing region.
- Nio announces the completion of its 10 millionth battery swap.
Update: NIO stock price reversed the previous day’s gains to hit fresh three-week lows at $20.26 before recovering slightly to settle at $20.83. Despite the rebound, the shares of the Chinese Electric Vehicle (EV) makers lost 6.09% on the day. NIO stock price failed to benefit from the recent recovery seen in the broader Wall Street indices, as investors assess the latest positions churning by several institutional investors, which have recently bought and sold shares of NIO. Besides, the FOMC June meeting’s minutes came in hawkish, as it revealed central bankers’ growing anxiety over inflation and plans to adopt a restrictive policy stance in order to control inflation.
NYSE:NIO started the session well lower as the Chinese EV maker was down by as much as 5% during early morning trading. On Tuesday, shares of Nio managed to rise by 3.84% and closed the trading day at $22.18. It was a remarkable reversal for the stock which rallied alongside the broader markets into the closing bell. The Dow Jones was the lone losing index with a dip of 129 basis points, the S&P 500 inched higher by 0.16%, and the NASDAQ posted a 1.75% gain on the strength of mega-cap tech stocks.
Stay up to speed with hot stocks' news!
What had Nio’s stock trading lower out of the start? There are reports that cases of the novel coronavirus are once again surging in areas of China. Specifically, the Anhui Province which is where Nio’s main production facilities are in the city of Hefei. Nio has already had to deal with production shutdowns due to outbreaks in Shanghai, so another closure to its facilities could mean another potential weak quarter for deliveries. Still, investor concerns were short-lived as the stock managed to erase those losses by the closing bell.
NIO stock forecast
Nio hit another milestone earlier this week as the company announced via its WeChat account that it has completed its 10 millionth battery swap. It’s a notable milestone, especially on the heels of a short report from Grizzly Research that alleged that Nio is inflating its battery swap subscription figures which has a direct impact on its revenues and net income. Still, perhaps this is Nio’s way of silencing the short sellers, as the company continues to hit major milestones for its innovative technology.
Previous updates
Update: NIO stock settled at $20.83, down 6.13% on Wednesday, despite US indexes managing to post modest gains for a second consecutive day. The Dow Jones Industrial Average added 70 points, while the S&P 500 summed 0.36%. The Nasdaq Composite gained 39 points or 0.35%. The US Federal Reserve saved the day, as the FOMC Minutes were as hawkish as expected, but policymakers refrained from hinting at a 100 bps hike and from talking about a potential recession. However, the document showed that officials agreed high inflation warranted restrictive interest rates, and are open to be even more restrictive if inflation persists. Also, the majority of participants saw a downside risk to growth, while judging there was a “significant risk” higher inflation could become entrenched.
Update: Nio shares have shed 6.5% to trade at $20.73 one hour into Wednesday's session. This pessimism is odd, seeing as how the Nasdaq is primarily flat and new vehicle sales figures out of China leave little more to be desired. Figures from June 20 through June 26 show a Chinese vehicle market in rampage mode. Overall, the week saw industry-wide sales 33% higher than the same period one year ago. Electric vehices grew at a much higher pace however. Nio reported sales of 12,961 in June, which amounts to a 60% growth rate YoY. The only negative aspect was that Nio remains behind competitors Li Auto (LI) and Xpeng (XPEV), which sold noticeably more units in June and grew sales at 69% and 133% YoY, respectively.
Like this article? Help us with some feedback by answering this survey:
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