Nio Share Price Pops Up, And The Momentum Goes Beyond Tesla Sentiment

Summary:
• Nio share price rose by more than 5 percent on Friday, partly helped by Tesla's impressive earnings report. However, there's more to it.

Nio share price bounced back strongly on Friday, strengthened by a positive sentiment surrounding the global EV market. Nio was up by 5.5 percent at the time of writing, trading at $5.26 to signal a reversal after its recent decline. A return above the $5.00 mark offers a significant psychological boost for the Chinese EV. However, NIO share price is still below the 20 and 50 Exponential Moving Average (EMA) levels on the daily chart.

Tesla stock price rose by 21 percent on Thursday as investors reacted to a forecast-beating earnings report. In addition, the EV pioneer gave an upbeat outlook for 2025, sending a positive signal across the EV industry. Nio (NYSE: NIO) will release its October sales figures next week, and there’s a good chance that it could be its best monthly release yet, as it will include the sales figures for its newly-launched Onvo L60 model.

Investors will also have their ears on the sales outlook for Nio’s new market in the Middle East and North Africa (MENA) region during next week’s release. The economic slowdown in China has impacted the EV market, much as Nio’s sales figures in the last five months have exceeded expectations.

Furthermore, the company has developed strong muscles with its groundbreaking battery swap business model, which has received strong demand. Nio also plans to expand its energy segment in its European market, with an eye on power stabilization of grids in Germany, the Netherlands, and Denmark. That is a promising growth front for Nio, as European nations focus on renewable energy transition.

Nio stock price prediction

The momentum on Nio stock price favours the upside if the action stays above 5.24. That will likely see the establishment of the first resistance at 5.30. However, if the buyers extend their control, it could extend gains to the second resistance at 5.37. Alternatively, moving below 5.24 will signal control by the sellers, with initial support likely to come at 5.17. If the sellers strengthen their momentum, it could break the support and invalidate the upside narrative. Meanwhile, the price decline could extend to test 5.12.