NIO Stock Price and Forecast: Rebounds after market selloff and preparing to charge up

• NYSE:NIO gains 4.31% on Wednesday as markets snap back.
• NIO is on the precipice of an electric vehicle revolution in its domestic market of China.
• Industry leader Tesla delivers memo stating estimated delivery of 500,000 cars in 2020, despite COVID-19 pandemic.

NYSE:NIO bounced back on Wednesday alongside the broader markets as President Trump backed off of his plan to delay stimulus package discussions until after the November federal election. In response, all of the major indices were able to rebound from losses on Wednesday as the markets continue to be tied to further government stimulus to help the battered economy. NIO peaked as high as $21.77 per share but once again the stock was unable to break through the $22 price barrier and closed the trading session back down to $21.56. 

These short-term price barriers may be a moot point in the long run as many Wall Street analysts and investors have high hopes for the Chinese automaker. Currently, China has the largest and fastest-growing passenger vehicle market in the world. In 2019, there were a reported 64 million new vehicles purchased around the world across all automakers and an estimated 21 million of those vehicles were in China. The Chinese government is already granting massive subsidies to residents who purchase electric vehicles, especially from domestic brands like Nio, XPeng (NYSE:XPEV), and Kandi. If Nio can remain at the crossroads of China’s demand for new vehicles and its cultural shift towards clean energy, there is no telling how large the firm can grow.

NIO stock news

While NIO still trails industry leader Tesla (NASDAQ:TSLA) in sales in China and around the world, there is reason for optimum behind NIO’s own continued triple-digit growth in monthly deliveries. NIO is set to penetrate the European market as early as next year which provides another booming electric vehicle market to boost its deliveries. Nio is also still introducing new vehicles to its lineup, which includes the recently released EC6, which can only help to increase its sales. Finally, its advanced technology in terms of charging stations and the battery swap service only furthers its first-mover advantage amongst domestic electric vehicle competitors.