Nio Inc. (NYSE: NIO), a Chinese electric vehicle manufacturer, had its stock drop more than 4% in regular trade on Thursday.
What happened was this: Nio’s stock has dropped for the third day in a row after three days of rises. The stock had gone above $50 for the first time since early March on Tuesday, owing to strong optimism in the electric car market.
Nio’s stock fell 4.3 percent to $50.90 in Thursday’s regular trading session.
Concerns about the resurgence of COVID-19 in the Asia-Pacific area, with an emphasis on the Delta variant, were blamed for the drop in Nio stock’s momentum.
Do Bullish Factors Still Exist? According to Trading View data, Nio stock closed above the 30 and 200 day simple moving averages on Thursday, indicating general optimistic emotions. A relative strength index (RSI) of 65.91 is also above 50, indicating a possible uptrend.
On Tuesday, Nio announced a 116.1 percent year-over-year rise in June deliveries, setting a new monthly high for the company.
Furthermore, Citi recently raised its price objective on Nio stock to $72 from $58.30, while maintaining a buy rating.
Retail investors are also showing a lot of interest in Nio. As of late Thursday, the business was the eighth most-discussed stock on Reddit’s r/WallStreetBets forum, statistics from Quiver Quantitative showed. Short squeezes are popular on the WSB forum, which has 10.6 million users.
Nio, a Tesla Inc. (NASDAQ: TSLA) competitor, pioneered the notion of battery-as-a-service, which allows users to rent a battery rather than buy one.
In the last two weeks, Nio has accelerated the pace at which exchange stations are being built. By the end of the year, the electric vehicle manufacturer hopes to have 500 battery swap stations operational in China.
Furthermore, Nio has just moved into Norway and is on track to market its ES8 SUV in the Scandinavian country.
Nio’s fourth mass-produced model, the ET7, is set to hit the market in the first quarter of 2022.
Continue reading: What’s Next for Nio’s Stock as Bulls Drive It Higher?
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