NIO Stock Forecast: Nio tumbles 9% despite the market turnaround

• NYSE: NIO tumbled another 9% even as Wall Street indices staged a solid comeback. 
• Chinese ADRs tumble as Ant Group is tied to a corruption scandal.
• EV stocks fall further as Tesla closes further below $1,000.

Update, January 25: Despite the remarkable turnaround staged by Wall Street indices on Monday, courtesy of bargain hunters, NIO stock price was offered no respite, as it tumbled over 9% to finish at $24.87. NIO shares almost tested the $23 mark before rebounding firmly at the close. In doing so, the price hit the lowest level since October 2020. Shares of Chinese electric-vehicle maker Nio slumped on the back of broad risk-aversion, triggered by heightened geopolitical tensions surrounding Russia and Ukraine. Meanwhile, investors fretted over the Fed rate hike expectations, with the FOMC decision due this Wednesday.

NYSE:NIO had its up and down week continue on Friday as the stock traded red and green days over the past few sessions. Shares of Nio plummeted by 6.11% and closed the trading day at $27.35. The ongoing sell-off of high growth names has been relentless and Nio investors have seen the stock price drop by 18.3% since the start of January. More pain for the broader markets came on Friday as the early-year correction continued into earnings season. The S&P 500 and NASDAQ tumbled by 2.72% and 1.89% respectively. The two indices are now 14% and 8% off of their all-time high prices that were set less than two months ago. 

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More bad news for Chinese ADR stocks as AliBaba (NYSE: BABA) subsidiary Ant Group is at the center of a corruption scandal. Shares of ADRs tumbled on Friday following the news as AliBaba fell by 5.95%, JD.com (NASDAQ: JD) lost 4.60%, and PinDuoDuo (NASDAQ: PDD) dropped by 5.61%. Nio’s domestic peers XPeng (NYSE: XPEV) and Li Auto (NASDAQ: LI) both fell by 6.28% and 4.35% respectively, in an all around ugly day for Chinese based stocks on the US markets.

NIO stock price

EV stocks struggled to gain traction on Friday once again. Tesla (NASDAQ: TSLA) plummeted further below the $1,000 price mark and closed the day at $943.90, just days before its earnings call on January 26th. Likewise, Lucid Group (NASDAQ: LCID) and Rivian (NASDAQ:R IVN) both dropped once again, with Rivian hitting a new 52-week low of $60.51 during intraday trading. Ford (NYSE: F) also lost a further 4.62% after a slew of recent analyst downgrades have stopped the red-hot stock in its tracks.

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Update: NIO dropped 7% at Monday’s open as Friday’s reckoning for tech and growth stocks continues unabated. The Federal Reserve’s Federal Open Market Committee (FOMC) meeting begins on Tuesday, and most observers expect an interest rate hike to wreak havoc on higher valuation tech stocks such as NIO. The stock is trading at $25.43 at the time of writing. The tech heavy NASDAQ is down 1.7%, but the Dow and S&P 500 are also in the red at the open. It appears the sell-off is continuing.