NIO Stock Forecast: Nio Inc falls as a new rival emerges in the luxury EV sector

NYSE:NIO fell by 1.92% during Friday’s trading session.
Deutsche Bank doubles down on Nio and adds to its stock position.
EV makers are on notice as Lucid looks to dominate the luxury EV sector.

UPDATE: NIO rose 2.7% to $43.45 in the first 15 minutes of Monday's New York session. It appears that buyers are getting in ahead of Tuesday's Q3 earnings release.

NYSE:NIO saw its recent win streak snapped on Friday as the EV sector failed to continue on with its hot streak. Shares of NIO fell by 1.92% and the stock closed the trading week at $42.29. It was still a strong week for the popular Chinese EV maker, as Nio managed to climb higher by 11% over the past five sessions. This is a key time of the year for Nio, as the company seems somewhat fragile coming off a disappointing October delivery report. Nio is also set to report its third quarter earnings on November 9.

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Just a day after Deutsche Bank analysts reiterated their buy rating for Nio’s stock and provided a bullish $70 price target, the investment firm filed its Form 13F for the quarter, disclosing an even larger stake. Deutsche Bank was already a major investor in Nio, but last quarter the German bank added nearly 1.3 million more shares. This brings Deutsche Bank’s total position up to 7.136 million shares worth an estimated $311 million. Obviously Deutsche Bank’s price target makes more sense now that we are able to see how large of a position the company holds.

NIO stock price

While it hasn’t made any plans to debut its vehicles in China as of yet, Lucid Group (NASDAQ:LCID) is turning heads all over the EV market. On Friday, shares of the newly public electric vehicle company surged by 12.61% as Motortrend released a stunning review of the new sedans. Nio is one of China’s main luxury EV makers, and the potential of this new rival has some Nio investors looking over their shoulders.

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