7:03 PM · 21 March 2022

NIO stock plunges over 4.0% after Deutsche Bank comments

NIO (NIO.US) shares price took a hit today, after Deutsche Bank analyst Edison Yu lowered price target on Chinese electric vehicle maker stock to $50 from $70, however reiterated his buy rating on  due to upcoming model launches and long-term growth potential, ahead of the fourth-quarter and full year 2021 earnings results which will be released after market close on Thursday. Nevertheless  the geopolitical concerns, supply constraints, and potential delisting from the US still weigh on the company's short-term prospects, therefore Deutsche Bank analysts are expecting a weak outlook for the upcoming quarter with deliveries around 25,000 vehicles, similar t0 figures from Q4. On the flip side, the company confirmed it will not follow the footsteps of its competitor Tesla in increasing prices of its cars.

NIO (NIO.US) shares have plunged in recent months, however yesterday buyers managed to break above the upper limit of the downward channel which coincides with the upper boundary of the 1;1 structure around $19.60. During today's session price pulled back to this level again. If buyers manage to regain control, then this will be a potential sign of a trend reversal. However a lot will depend on Thursday’s quarterly results. If they turn out to be a disappointment, downward move may accelerate towards support at $15.46. Source: xStation5

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