- Summary:
- Nio stock price Thursday registered the largest daily loss since mid-September, but the company's strategy will keep the bulls coming.
Nio stock price experienced a scintillating run in September as the Chinese EV maker announced that its cheapest EV model yet was ready for the market. After years of sustained cash drains, mostly in research and development, Nio is turning its focus on market expansion and sales numbers.
Nio (NYSE: NIO) , dropped sharply on Thursday, closing the session at -7 percent as Chinese stock markets snapped their 13-session winning streak on concerns over the Middle East conflict. Nio ended the day at $6.70 in the New York trading session, but was up by 2.5 percent in Friday’s pre-market session, signaling a potential recovery.
The company reported a rise in its sales numbers in September, delivering 21,181 vehicles-its second-highest monthly delivery on record. That figure included 832 Onvo L60 crossover SUV models, whose deliveries started towards the end of September. The new model is expected to boost Nio’s sales substantially, help it break even and put it on the path to profitability.
The Onvo L60 market performance will be better captured at the end of October, when the full-month sales cycle will have been completed. The timing of the Onvo L60 launch is opportune, as it comes in the midst of an economic stimulus announcement by China. That could boost sales in the near-term and help prop up Nio stock price. Meanwhile, Nio’s battery swap strategy has proven a hit with customers as it saves them a lot of time that would have been otherwise spent charging their EVs.
Nio stock price assessment
Nio stock price pivots at 6.77, and the upside will likely prevail if the price action stays above that level. The upside momentum will likely proceed to 7.08 where the first resistance could come. However, if the bulls manage to convert that mark into a support, the upside could procceed to test the next barrier at 7.29.
On the other hand, the downside will prevail if the action stays below 6.77. With the bears in control, the first support could come at 6.52, but a stronger bearish run could extend losses to invalidate the upside narrative and test the second support at 6.27.
