Nio stock price continued with its newfound upside momentum on Wednesday’s premarket session, as investors reacted to news of its market expansion. NIO closed Tuesday’s session up by 1.75 percent and had risen by 1.15 percent in the pre-market session to trade at $5.29. The Chinese EV maker has had a rough ride in October, driven by concerns over the adequacy of China’s economic stimulus package. As a result, NIO (NSE: NIO) is down by 2 percent in the last month.
Nonetheless, the stock’s upside looks promising, as it plans to expand its market and release the inaugural sales figures for its low-cost Onvo L60 SUV crossover model. Nio recently signed a Memorandum of Understanding (MoU) with UAE firm, CYVN Holdings to establish its arm in the Middle East and North Africa (MENA) region. That opens up a new market away from its primary market in China, and could help prop up sales.
Also, Nio says it will proceed with its expansion in Europe, defying the Eurozone’s move to raise tariffs on EVs made in China. The company will launch its Firefly sub-brand in Europe in the next few months, hoping to reverse the recent sales slump. The Firefly is a sub-$30k model, making it a formidable competitor even in a high tarrif market.
The Onvo and Firefly combination are Nio’s onslaught against other EV makers across the broader global market, and their cheaper price tags will likely give Nio an edge. That augurs well for Nio stock price in the medium term.
Nio stock price prediction
Nio stock price pivots at 5.25, and the buyers will be in control if they keep the action above that mark. That could see the stock move higher to encounter the first resistance at 5.31. However, a stronger upward momentum could breach that barrier and test 5.36.
Conversely, moving below 5.25 will put the sellers in control, with initial support likely to be at 5.20. However, if the bears extend their hold of the market, Nio could break below the first support and render the upsdie narrative invalid. Meanwhile, the downside could extend and test the second support level at 5.15.
