NIO Stock Price and Forecast: Shares crash after selloff on renewed COVID-19 fears and lack of stimulus
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER- NYSE:NIO drops alongside broader markets as the electric vehicle sector continues to get pummeled.
- Low chance of a stimulus package before November 3rd triggers volatile stocks selloff.
- With another wave of COVID-19 in Europe, NIO’s expansion to the continent may be delayed.
NYSE:NIO has finally slowed down its torrid pace from earlier this year as shares tumbled on Monday to the tune of 4.23% amidst a broader market selloff as the global economy braces itself for another wave of COVID-19. The NASDAQ shed 189 basis points, while the Dow Jones was the biggest loser on the day, dropping over 650 basis points as the fading hopes of a stimulus package from the American government sent investors packing. In times of uncertainty, it is common for volatile stocks to be sold off first as investors seek stability until the markets settle.
NIO was not the only electric vehicle company to struggle as Tesla (NASDAQ:TSLA), Workhorse (NASDAQ:WKHS), Hyliion (NYSE:HYLN), Nikola (NASDAQ:NKLA), and Xpeng (NYSE:XPEV) all fell significantly as investors shed some profits from each company’s run-up from earlier this year. Part of NIO’s outlook in 2021 includes expanding into Europe, although a spike in coronavirus cases may slow that down if the status worsens.
NIO stock news
As the chances of government stimulus continue to shrink ahead of the November 3rd federal election, investors can expect to see continued volatility in the markets, especially sectors like EV-automakers. While NIO should still see a positive end to the year with its quarterly earnings call presumably at some point in mid-November, as well as NIO Day in January, NIO investors may have to put up with some more short-term pain until things begin to stabilize.
- NYSE:NIO drops alongside broader markets as the electric vehicle sector continues to get pummeled.
- Low chance of a stimulus package before November 3rd triggers volatile stocks selloff.
- With another wave of COVID-19 in Europe, NIO’s expansion to the continent may be delayed.
NYSE:NIO has finally slowed down its torrid pace from earlier this year as shares tumbled on Monday to the tune of 4.23% amidst a broader market selloff as the global economy braces itself for another wave of COVID-19. The NASDAQ shed 189 basis points, while the Dow Jones was the biggest loser on the day, dropping over 650 basis points as the fading hopes of a stimulus package from the American government sent investors packing. In times of uncertainty, it is common for volatile stocks to be sold off first as investors seek stability until the markets settle.
NIO was not the only electric vehicle company to struggle as Tesla (NASDAQ:TSLA), Workhorse (NASDAQ:WKHS), Hyliion (NYSE:HYLN), Nikola (NASDAQ:NKLA), and Xpeng (NYSE:XPEV) all fell significantly as investors shed some profits from each company’s run-up from earlier this year. Part of NIO’s outlook in 2021 includes expanding into Europe, although a spike in coronavirus cases may slow that down if the status worsens.
NIO stock news
As the chances of government stimulus continue to shrink ahead of the November 3rd federal election, investors can expect to see continued volatility in the markets, especially sectors like EV-automakers. While NIO should still see a positive end to the year with its quarterly earnings call presumably at some point in mid-November, as well as NIO Day in January, NIO investors may have to put up with some more short-term pain until things begin to stabilize.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.