NIO Stock Price and News: Remains pressured on China’s regulatory crackdown

NIO Stock Price and News: Remains pressured on China’s regulatory crackdown

NYSE:NIO fell by 0.66% on Monday, as investors turn cautious.

The Chinese Government implements new data protection laws that affect EV Makers.

XPeng President is confident that EV Makers will not be negatively affected.

Update August 31: Nio Inc (NYSE: NIO) extended its recent bearish momentum into a new week on Monday, although managed to stage a quick recovery from five-day lows of $36.64. The stock price closed the day at $37.80, still down 0.66%. NIO shares failed to benefit from the record run on Wall Street indices, as China’s fresh crackdown on the country’s private sector industries weighed. China’s regulatory curbs have been the main factor driving shares in the EV maker lower since July.

NYSE:NIO fell once again on Friday and lagged the broader markets and EV Sector. Shares of NIO are still up by 1.63% during the past week, but down nearly 10% during the past month. On Friday, Nio dipped by a further 0.55% and closed the trading week at $38.05. Federal Reserve Chairman Jerome Powell reiterated his position on soft tapering to potentially begin at the end of 2021. The news sat well with investors and growth and tech stocks soared during the session, as the NASDAQ hit a new all-time high after gaining 1.23% to close the week.

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The Chinese government crackdown on tech companies continued as it takes a stricter stance on the usage of personal data. Things reached a boiling point when ride-hailing giant Didi (NYSE:DIDI) had its IPO on Wall Street earlier this year. Since then, Beijing has been on a rampage that has seen powerful tech companies like AliBaba (NYSE:BABA) and Tecnent (TCEHY) lose billions of dollars in market cap during one of the worst stock corrections in ADR history.

NIO stock forecast

The President of Nio rival XPeng (NYSE:XPEV) is confident that EV Makers are actually supported by the government. Brian Gu stated that Chinese automakers are actually ‘on the right side of regulation’ as the CCP identifies the industry as critical infrastructure. Indeed, both Nio and XPeng received heavy rounds of investment from the local governments, so it shouldn’t be surprising that the EV industry is left out of the CCP’s crosshairs.

Previous updates

Update August 30: Nio Inc (NYSE: NIO) ended Monday down 0.66% at $37.80 per share, as Wall Street was torn between US Federal Reserve Head Powell dovish words and hawkish comments from other Fed officials. The Nasdaq Composite added 136 points, while the S&P 500 also closed in the green. The DJIA and the NYSE, on the other hand, finished the day in the red. Additionally, investors are turning their eyes to US data to be released later in the week, and whether if strong figures may twist Powell’s hand.

Update: Nio Inc (NYSE: NIO) is set to bounce from $38 as a new trading week begins. Shares of the Chinese electric vehicle maker have been stabilizing in recent days as investors await the next moves from Beijing. Authorities in the world’s second-largest economy are pursuing their biggest tech companies. However, the extent of the regulatory efforts is unclear. Broader markets have cheered the Federal Reserve’s reluctance to withdraw stimulus from the economy just yet.

NIO Stock Price and News: NIO falls alongside EV stocks as XPeng reports mixed earnings

NYSE:NIO fell again on Friday as the broader markets closed at highs.

Nio rival XPeng delivered mixed earnings on Thursday.

Li Auto is set to report its second quarter earnings on August 30th.

Update: August 30: NIO closed lower on Friday despite reassuring noises coming from Fed chair Powell at the Jackson Hole jamboree and most stcoks pusing higher. The S&P 500 and Dow Jones closed yet again at all time highs and Tesla the EV sector leader rallied but NIO could not catch a bid. The stock closed at $38.05 for a loss of 0.55%.

Update August 27: Nio Inc (NYSE: NIO) is set to kick off Friday’s trading session with a minor rise, yet still remain below the high levels recorded in mid-August. Shares of the Chinese electric vehicle company are still suffering from Beijing’s techlash, which could extend to preventing some companies from doing an IPO in the US. Fderal Reserve Chair Jerome Powell’s critical Jackson Hole speech is set to rock markets.

NYSE:NIO shares retreated once again on Thursday, as Chinese ADRs and the broader electric vehicle sector both pulled back. Shares of Nio fell by 1.77% and closed the trading day at $38.26. Although there was no specific news out of Nio, the stock fell in sympathy to most of the broader markets showing hesitation as the Federal Reserve began its annual symposium at Jackson Hole, Wyoming. There was also mixed economic data, including a rise in weekly initial jobless claims as well as a slower than expected growth of GDP in the second quarter.

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Before the U.S. markets opened, Nio rival XPeng (NYSE:XPEV) reported its second quarter earnings. The results were mixed, as the company reported a much wider than expected loss for the quarter. Sales jumped to $582.5 million for the quarter, as vehicle deliveries topped 8,000 for the month of July which was a 228% year over year increase. XPeng provided a fairly generous forecast for the third quarter, showing that the global chip shortage may not have an issue on its delivery growth. Shares of XPeng were down 0.47% during the session.

NIO stock forecast

The third of the big three Chinese EV makers Li Auto (NASDAQ:LI) is set to report its earnings on August 30th. It will be interesting to see what happens as both Nio and XPeng sold off in the session following their earnings call. It has been a trying period for all Chinese ADRs, and the global chip shortage and global supply chain issues have all contributed to the electric vehicle stocks losing ground in 2021.

NIO Stock Price and News: NIO adds another 2% to the recovery rally

NYSE:NIO adds another 2% to Monday’s rally in early trading.

Chinese stocks continue to see inflows after recent heavy selling.

NIO targets $40 and a break above short term moving averages.

Update: NIO stocks rose to fresh four-day highs of $39.61 on Tuesday, before reversing some gains to finish at $38.94, still adding 2.02% on the day. Over the last three straight trading days, NIO share price gained nearly 7%. Buying resurgence in the US-listed Chinese stocks lifted the sentiment around the Chinese electric vehicle maker NIO. Meanwhile, fresh record highs on the broader Indices also collaborated with its recent recovery momentum.

NYSE:NIO rebounded to start the week as investors shrugged off the recent driver-assist system fatality that caused the stock to tumble last week. Other good news had China stocks rallying, including the first day since July in which no new cases of COVID-19 were reported in the country. Shares of NIO gained 3.39% to close the trading session at $38.17. The markets rebounded to start the week as the NASDAQ and S&P 500 hit new all-time highs on the strength of tech sectors, particularly chip makers like AMD (NASDAQ:AMD) and NVIDIA (NASDAQ:NVDA).

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Speaking of chip makers, it is believed that worsening COVID-19 cases in South East Asian countries like Malaysia, could cause the ongoing chip shortage to worsen over the near term. This shortage has already affected companies like Nio, which cited the shortage in chips for falling production numbers in the second half of this year. Other companies like Ford (NYSE:F) have also had to delay releases of new electric vehicle models, and unfortunately it looks like this shortage is going to continue into 2022.

NIO stock forecast

In Stateside news, General Motors (NYSE:GM) fell on Monday and lagged the broader electric vehicle sector. The sell off was due to the company recalling its Chevrolet Bolt vehicles over concerns that the battery may catch fire. This recall includes all models of the Bolt including the newer ones from 2021 and is expected to cost General Motors upwards of $1 billion USD. The recall is a black eye for all electric vehicles, but investors only seemed to want to punish shares of GM on Monday.

Previous Updates:

Update: NIO continued to recover on Tuesday after a turbulent week last week. NIO stock added over 3% on Monday and so far in early trading on Tuesday the electric car maker is up just about 2% in early trading. $40.61 is the resistance to aim for as this is the gap from last week’s drop on the chart. NIO needs to break $47 though to turn bullish on the charts.