Why NIO Stock Is Down Today

Shares of Chinese electric vehicle maker NIO (NYSE:NIO) were trading lower on Monday.


What happened

There was no obvious news driving shares lower, but it may have been caught in a sell-off that affected other recently hot investments including Tesla and Bitcoin.

res of Nio slid 5.52% to $52.00 at 14:54 EST on Monday, following last session’s upward trend. NYSE Composite is jumping 0.37% to $15,419.55, following last session’s upward trend, This seems, up until now, a somewhat positive trend trading session today.

Nio’s last close was $55.04, 28.83% under its 52-week high of $66.99.

So what

While there are good reasons to be bullish on NIO’s long-term prospects, it’s hard to argue with the notion that the stock has become expensive. After all, this is a company that sold just 43,000 vehicles in 2020 — and it’s still sporting a market cap nearly twice that of Ford Motor Company.

Investors who have been around The Motley Fool for a while know that some stocks that seem expensive now often look cheap in retrospect. That could turn out to be true of NIO. But I think it’s very possible that today’s downward movement is related to declines in Tesla, Bitcoin, and similar assets in the sense that lots of things are looking expensive — and some investors may be responding by moving to reduce overall portfolio risk.

That might well include taking some NIO profits, and that could be why the stock is down today.

Now what

There was some small news on NIO on Monday, but it wasn’t bearish. China’s Auto Home website reported that NIO is now in the last stages of testing its new second-generation battery-swap stations. The company expects to begin deploying the stations in April.

Nio’s Sales

Nio’s sales growth is 143.2% for the current quarter and 266.9% for the next. The company’s growth estimates for the present quarter and the next is 76.9% and 53.8%, respectively.

Nio’s last day, last week, and last month’s average volatility was 1.12%, 2.30%, and 2.66%, respectively.

Nio’s last day, last week, and last month’s high and low average amplitude percentage was 3.59%, 4.77%, and 5.99%, respectively.

Nio’s Stock Yearly Top and Bottom Value
Nio’s stock is valued at $52.00 at 14:54 EST, way under its 52-week high of $66.99 and way above its 52-week low of $2.11.

Nio’s Moving Average

Nio’s worth is way under its 50-day moving average of $58.12 and way higher than its 200-day moving average of $37.25.

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