- 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
Australian Dollar extends gains despite mixed PMI
The Australian Dollar (AUD) continues to strengthen against the US Dollar (USD) following the release of mixed Judo Bank Purchasing Managers' Index (PMI) data from Australia on Friday. The AUD also benefits from a hawkish outlook by the Reserve Bank of Australia (RBA) regarding future interest rate decisions.
Japanese Yen fails to build on stronger CPI-led intraday uptick against USD
The Japanese Yen (JPY) attracted some follow-through buying for the second successive day following the release of slightly higher-than-expected consumer inflation figures from Japan. This comes on top of Thursday's hawkish remarks from BoJ Governor Kazuo Ueda, which keeps expectations for a December interest rate hike in play.
Gold price advances to near two-week top on geopolitical risks
Gold price touched nearly a two-week high during the Asian session as the worsening Russia-Ukraine conflict benefited traditional safe-haven assets. The weekly uptrend seems unaffected by bets for less aggressive Fed policy easing, sustained USD buying and the prevalent risk-on environment
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.