Why is NIO crashing? - Should You Buy $43? - MASSIVE News- NIO Stock Update & Price Prediction

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WILL NIO stock recover or is it time to sell the stock and leave the sinking ship? What Share prices will we see in the future?
SO NIO HAS DROPPED 22% from the all time highs and people are losing hope that maybe we have seen the end of NIO. LETs go through JUST WHY NIO dropped last week and understand whether we have reached the end for this stock OR IF WE ARE ABOUT TO SEE A MASSIVE BOUNCING RECOVERY that can take NIO to new all time highs! Stay tuned!

Looking at the stock chart NIO opened last week at 54 dollars a share and we were expecting this insane growth to continue. Instead this week ended in a share price of 43 and a decline of 20%. And after reading and watching the reactions of nio investors it seems like most people still believe in the company like before. And SO DO I. ‘

To understand whether you should sell out of a company after a recent drop the best thing you can do in my opinion is to SEE WHY IT DROPPED IN THE FIRST PLACE. So let’s do that before we decide IF THIS DROP was justified or IF IT IS JUST OUT OF FEAR and not based in reality.

Let’s first realize that we have had AN INSANELY good year for almost all legitimate electric vehicle companies. Pretty much any EV stock you can mention has gained 100s of percents in this relatively SHORT time period and year to date gains of NIO BEFORE the drop last week was 1240%.

BUT EVEN IF YOU do account for this recent drop, that IS STILL A YEAR TO DATE gain of 970% which is insane for a company of this size. AND I KNOW obviously most of us NIO investors DID NOT buy stock in this company when it was at 3 dollars a share, ME INCLUDED, but the market doesn’t care about that.

The market is quite irrational in the short term and after a stock has a RALLY THAT IS AS INSANE AS THE ONE NIO HAS HAD the market one small, maybe even nonsensical negative catalyst is all that is needed for a panic sell off to happen

And I think we saw a couple of those last week. First of all NIO shares dropped 10% only on Monday on a report that short seller Hindenburg Research released. These guys are famous for making Nikola drop back in September and now they published another article on another Electric vehicle company.

But not NIO as you WOULD HAVE EXPECTED since it dropped 10% after all, NO THIS REPORT was on an ANOTHER CHINESE EV COMPANY called KANDI TECHNOLOGIES ticker symbol KNDI with allegations that the company has reported revenue figures that didn’t reflect their actually INDEPENDENT THIRD PARTY SALES.

My guess for why NIO dropped aswell here is simply because it is also a Chinese company and because the market got scared that they are also in

some way manipulating their numbers. VERY UNLIKELY IN MY OPINIONG since these guys are actually independently audited by the same auditor that Tesla has. IT IS THE CHINESE ENTITY OF IT and the government doesn’t yet allow US to look into them but still.

For a company as established as NIO I can’t imagine them trying to do something like this and just ruin their reputation forever and AS NIO starts expanding into the US I believe they will find a way to be completely transparent without interference from China. So simply put THE DROP ON MONDAY had nothing to do with the actual fundamentals of NIO.

So the second 10% loss we saw with NIO was on Tuesday where NIO reported record November deliveries that had more than doubled year over year to 5300 vehicles delivered with NIOs new EC6 sport crosser seeing a RAPID UPTICK since its lunch just a couple months earlier. So why did it drop if it wasn’t related to NIO at all?

Possibly because the market started getting scared of NIO getting delisted. But people, this delisting bill was announced BACK IN MAY and THIS IS A VERY LONG TERM THING. China has THREE YEARS to allow the US to audit their auditors. SO AGAIN IF ANYTHING, THE FUNDAMENTALS OF NIO GOT EVEN STRONGER on Tuesday and this drop was also just a speculative one not at all related to the company.

On Wednesday we saw NIO ending with a +6% increase in share price which is nice of course but still down big on the week. That day we saw Goldman Sachs analyst upgrading NIO from a sell to a neutral with a price target of 59 dollars a share with this argument being that in hindsight, they underestimated the benefits to NIO from 1, POWERTRAIN BREAKTHROUGH, particularly with the cell-to-pack large cell technologies and 2, the introduction of NIO’s battery as a service program which has significantly expanded NIO’s addressable market.

Thursday and Friday as NIO kept going down the only actual news were another analyst this time giving a negative view on a Chinese Ev company. But not NIO guys, rather it was about XPeng and how it is overvalued. Li Auto also took a hit as they had to tried to raise more money from investors to invest in their business further.

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