The Nio stock price has gone nowhere in the past few days. The shares are trading at $45.46, where they have been in the past few days. They are about 32% below the highest level this year, bringing its total market cap to more than $74 billion. This makes it substantially bigger than Ford, which has a market cap of more than $59 billion.
Nio news. Nio is a fast-growing electric car company that targets the Chinese market. The company sells several car models as it hopes to be the biggest alternative to Tesla in the country. The Nio stock price jumped this month after the company received a new license that will see it sell cars in Europe, where it will compete with local brands like Volkswagen and BMW.
Nio’s pricey valuation is mostly because investors believe that the company will have a strong market share in China, which has become the biggest market for electric vehicles. The biggest concern is that the firm faces substantial competition in the country from companies like Xpeng and Li Auto, among others. Still, analysts believe that it could beat the competitors because it is relatively ahead of the other firms.
Analysts are generally upbeat about the Nio stock price. Most of them expect that it will rise above $50 in the near term. Those at BOCOM, Citigroup, and Mizuho see it rising above $60.
The daily chart shows that the Nio stock price formed a double-bottom pattern at the $31 level. This month, it has jumped by more than 50%. The shares are also above the 50-day and 100-day moving averages and are slightly above the resistance at $43.
Still, the chart shows that the shares’ upward momentum and volume have faded. Therefore, while the upward momentum will likely continue, we can’t rule out a situation where the shares retreats in the near term. If this happens, the next key support to watch will be the psychological level of $40. The alternative scenario is where the stock bounces back to the psychological level of $50.
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