Nio Stock Dips as Lockdowns Weigh on Deliveries

The electric vehicle name posted worse-than-expected first-quarter losses

Deputy Editor
Jun 9, 2022 at 11:19 AM
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Nio Inc (NYSE:NIO) is suffering a post-earnings drop today, down 6.7% to trade at $19.02 at last glance, and earlier dipping as low as $18.45. Covid-19 lockdowns in China caused deliveries to slow for the first five months of the year, leading to wider-than-expected first-quarter losses. The electric vehicle (EV) name announced a weak second-quarter revenue forecast as well, though CEO William Bin Li predicts recovery by the third quarter, noting the company “achieved an all-time high order flow” in May. 

NIO is today looking to snap a eight-day winning streak, should these losses hold. The equity yesterday closed above the 100-day moving average for the first time since late November. This had the stock further removed from its May 12, nearly two-year low of $11.67, but still down 40.1% year-to-date. 

Analysts have yet to chime in on today's update, remaining firmly bullish. Of the seven in coverage, six carry a "strong buy" rating, while the one calls NIO a tepid "hold." Plus, the 12-month consensus price target of $41.28 is a massive 117.3% premium to the stock's current perch. 

NIO is typically a popular stock in the options pits, as in the case today. Options volume is running at double the intraday average this morning, with 137,000 calls and 80,000 puts exchanged so far. The weekly 6/10 20-strike call is the most popular, followed by the 21-strike call in the same series, with new positions currently being opened at both. 

 

 

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