NIO Stock Price Tanks As Bears Target 70% Downside
Nio stock price has been in a downtrend after hitting its yearly peak of $16. The stock of the EV manufacturer has since suffered a 55% correction due to its weak Q2 earnings report. As a result, the shares of NIO is priced at $7.7 and show a 4.82% loss in the daily time frame.
The Wall Street indices inched lower on Wednesday as investors remained concerned about the conflict in the Middle East. The 1.9% recovery in the treasury yields further caused headwinds for the US equities. On Wednesday, the Nasdaq 100 and S&P 500 indices declined by 1.26% and 0.7%, respectively.
NIO Sets Sights On Europe For Expansion
The Chinese EV manufacturing expressed its interest in expanding its dealer network all over Europe. This move will allow NIO to improve its cash flow and sales figures. According to reports, NIO has offered vacancies in France, Italy, Hungary, Switzerland, and Austria for this purpose. The Chinese EV maker also intends to change its price model for the continent after the CEO expressed dissatisfaction with the sales figures in Europe.
In the upcoming earnings report for NIO, analysts expect a $0.43 loss per share which is 19.4% less than last year. The EV company is also expected to earn around $2.63 billion, which represents a 44% improvement over the year prior.
NIO Stock Price Forecast
NYSE: NIO has been very bearish after a breakdown below $8.5 which I predicted quite accurately a few weeks ago. A weekly analysis of the chart also shows that the stock traded inside the $8.5-$14 range for months before a breakdown. Currently, the stock has broken below the low of this range and is sitting 10% below it.
The NIO stock price forecast is not looking good at all since the breakdown below $8.5. A failure to reclaim this level may give bears enough confidence to target the $2.44 support level which is 67% below the current levels. Bulls may still have a chance, as the weekly RSI indicator is forming a bullish divergence. However, this will only come into effect if the price breaks above $8.5.