NIO, the Chinese automobile manufacturing company has been a major stakeholder in the EV market surge in 2020. The Shanghai-based electric vehicle industry has been on the rise since the beginning of the year, despite the global pandemic situation. This company was one of the major players in the EV market-rise game. The company saw a rise in its share price by almost 970% till December 4th.
The company’s year-over-year basis gain also shot up massively. The EV company traded with a gain of 1240% last week. But the company recently witnessed a strange dip in the share value. NIO’s value plunged by almost 20% costing major stakeholders a major chunk of their profits.
NIO Stocks Dipped By 20%; Is This Temporary?
Institutional investors and analysts are now wondering if this dip is a temporary blip or a warning call for investors to reverse their pattern of thinking about this company.
More recent news on this company’s stock tells us that NIO plunged by 10% this Monday matching steps with other lesser-known EV industry players like Kandi Technologies, KNDI. Whereas Kandi’s stock fell by about 29%, analysts had expected that popular EV industries like NIO might avoid the downdraft. But matters didn’t turn out to be so.
The next 10% dip came on Tuesday. This news was surprising as the company’s business is on the rise with more than double monthly deliveries in November and the launch of the new EC6 sport crossover that delivered about 1500 vehicles.
The company’s stock made a 6% recovery on Wednesday after investors reflected on the outstanding sales made by the company recently. Firms like Goldman Sachs upgraded the company’s rating from a “sell” to “neutral” and heavily boosted its target price. However, there was a 5% dip on Thursday. Investors are of the opinion that NIO stock has become extremely analyst-dependent currently.