Nio Share Price Recovers After Record Deliveries

Nio rebounds off trend line support after record delivery numbers.

Tech (1)

Electric Vehicle stocks have seen huge demand over the past year. Whilst Tesla is the  most well-known of these stocks, it is by no means the only Electric Vehicle company to have performed well in 2020

Nio, the Chinese based electric vehicle maker has surged 1000% since May. Since reporting a monthly update on 3rd January, which my colleague Matt Weller touches on here, the stock surged almost 17% across the month of January. Nio jumped an additional 4% in Wednesday’s trade and held those gains on Thursday.

Record deliveries drive the Nio share price higher
The latest share price surge higher comes after a sales report revealed strong demand for NIO’s upscale electric SUV’s.

The January report revealed this week confirmed a monthly record of 7225 vehicles sold in the first month of the year, despite strong competition from Tesla’ made in China Model Y. This represents a 352% year on year increase from January 2020.

The figure beat rival XPeng’s January deliveries of 6015 and LI Auto’s 5379 vehicles

Some analyst following the stock consider that demand could remain elevated at least until the Chinese Lunar New Year holiday week.

What Next?
The next major event for NIO investors will be Q4 and full year 2020 earnings. The date is yet to be announced but it is expected sooner rather than later, most likely in the second half of February.

Risks ahead
Apple announcing that it is partnering with South Korean automobile maker Kia for project Titan promise to shake up the EV industry over the coming years with the Apple Car. Alibaba has also partnered with state run automaker SAIC.

Nio technical analysis
After hitting an all time high of $67.00 at the start of the year, Nio’s share price retreated before finding support on the lower band of an ascending channel pattern at 54.50. 

A recovery off 54.50 this week has seen the price test the key resistance of 57.60 (November’s high). Should the price convincingly break through this important level for the bulls then the psychological resistance level of 60 needs to be overcome before the bulls target $67.00 all time high. 

Should the price fail to hold the key $57.60 level then 54.65 the lower band of the ascending trendline could come into play with a move below negating the current longer term uptend. A move below here could see 51.65 the 50 sma tested.



More from Equities

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.