- NYSE:NIO dips by 6.99% as broader growth sector sell off continues to hit investors.
- Nio is not the only EV company to get hammered on Thursday.
- The electric vehicle sector has been hit hard in 2021 but the long-term outlook is bright according to analysts.
NYSE:NIO emerged as one of the top stocks for growth investors to accumulate during 2020, but 2021 has not been quite as rosy for the China-based company. On Thursday, the slide continued for NIO as it dropped 6.99% to close the trading session at $41.63. Shares are now trading well below the 50-day moving average and are falling close to the 200-day moving average price of $40.94. All in all, NIO is down 22% since the start of 2021, and 37% off of its all-time high price of $66.99 set in late January.
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But NIO has not been the only electric vehicle maker to be hit by the 2021 price correction. On Thursday, industry leader Tesla (NASDAQ:TSLA) fell by 6.93%, XPeng (NYSE:XPEV) fell by 3.13%, and Li Auto (NASDAQ:LI) fell by 1.45%. Tesla itself has seen a 10% drop since the start of the year, and has experienced increased volatility during the recent tech industry sell off. Another stock that has struggled is CCIV (NYSE:CCIV) or the SPAC IPO that will bring Lucid Motors to the public market. Thursday saw CCIV drop 8.81% itself, as the hype around Lucid continues to fall.
NIO Stock news
Long term investors may find this dip as a nice buying opportunity for NIO, as it should be noted that Wall Street analysts remain bullish. There is a median 12-month price target of $57.57, and some analysts are even more optimistic than that. NIO has plenty of advancements coming down the pipe including four new vehicles set to launch in 2022, along with ultra-fast charging, and a $100 per month autonomous driving subscription.
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