- NYSE:NIO struggled on Thursday losing nearly 10%.
- The electric vehicle sector has been in the spotlight with the Churchill Lucid merger.
- NIO releases Q4 2020 earnings on Monday, March 1.
Update, February 26: Nio Inc (NYSE: NIO) is moving up alongside the broader stock market as lower bond yields are pushing equities higher. The increase in returns on US debt prompted a sharp sell-off in global markets on Thursday and a bounceback is seen on Friday. Central bankers all over the world are stressing calm about the economic recovery and some are vowing to push bond yields lower by buying more of their government's debt. Another factor aiding Nio is the publication of robust earnings from rival Li Auto. The rival Chinese EV-maker is experiencing a similar growth path to Nio. At the time of writing, NIO is up some 1.5% to around $475.50
NYSE:NIO looks like it has finally hit a consolidated bottom and may be ready to trend back upwards after trading flat for the past couple of weeks. On Thursday, shares gained 5.60% to close the trading session at $51.86 amidst a global market rally after a two-day mini correction. The selloff was over concerns that the United States would be raising its interest rates sooner than most investors believed. Those fears were dashed on Wednesday when Federal Reserve Chairman Jerome Powell told Congress that he is in no rush to raise interest rates as the U.S. economy continues to heal from the COVID-19 pandemic.
Nio was not the only electric vehicle company to rebound on Wednesday, as industry leader Tesla (NASDAQ:TSLA) added 6.18% after hitting its lowest price levels of 2021 on Tuesday. Tesla was buoyed by a public report that Ark Invest had scooped up several hundred thousand shares of Elon Musk’s company during its recent downturn. Catherine Wood and Ark Invest have been huge supporters of Tesla for years now, and seem comfortable enough to continue to add to its portfolio, even at these lofty valuations.
NIO stock news
Nio will look to build upon its record vehicle deliveries last quarter, as well as increasing its year-over-year revenues once again. Industry and China rival Li Auto (NASDAQ:LI) will report its quarterly earnings on Thursday of this week, and investors may be looking at Li’s performance as a gauge of what to do with Nio’s stock moving forward. XPeng (NYSE:XPEV) is also preparing its earnings call on March 8th, as the well-inflated electric vehicle sector in China has lost some of its steam since the start of 2021.
Previous updates
February 26: Shares in NIO suffered on Thursday, closing at $46.81, a loss of nearly 10%. The electric vehicle (EV) sector has been on trend for 2021 but recently some weakness has spread across from tech and the broader market. Shares in CCIV, which has just merged with EV manufacturer Lucid Motors, tumbled after the merger news was announced and Tesla, the EV market leader, has also suffered a share price reversal recently. Earnings on Monday will give further direction to NIO investors.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats below 1.0800 ahead of US data
EUR/USD loses traction and trades below 1.0800 on Tuesday. The risk-averse market atmosphere ahead of Wednesday's tariff announcements makes it difficult for the pair to hold its ground as the market attention turns to US data releases.
GBP/USD struggles to stabilize above 1.2900
Following a short-lasting uptick in the European session, GBP/USD edges lower and trades slightly below 1.2900 on Tuesday. The US Dollar (USD) holds its ground as investors adopt a cautious stance in anticipation of data releases and Wednesday's tariff decisions.
Gold pulls away from record highs, holds comfortably above $3,100
Gold corrects lower but manages to hold comfortably above $3,100 after touching a new record-high near $3,150 earlier in the day. Falling US Treasury bond yields help XAU/USD limit its losses as investors refrain from taking large positions ahead of US tariff announcements.
JOLTS job openings set to decline modestly in February
The Job Openings and Labor Turnover Survey (JOLTS) will be released on Tuesday by the United States Bureau of Labor Statistics. Markets expect job openings to decline to 7.63 million on the last business day of February.
Is the US economy headed for a recession?
Leading economists say a recession is more likely than originally expected. With new tariffs set to be launched on April 2, investors and economists are growing more concerned about an economic slowdown or recession.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.