NIO Stock Price Forecast: Sell Off in Nio After Q2, What Next?
NIO stock recently reported its second-quarter earnings on August 29, 2023. However, the Chinese electric vehicle company NIO missed its earnings expectations and reported a net loss of $835.1 Million which was double when we compared it to the previous quarter. NIO stock price is down by more than 6% after the earnings report.
In the second quarter, the company delivered fewer vehicles compared to the first quarter and the reason behind this is the transition to the new model and the economic slowdown in China. Furthermore, the company highlights strong growth in vehicle deliveries and revenue in the upcoming third quarter as revamped and new models start shipping. Nio also announced to launch of its new mobile phone in September which was self-designed and had features to control Nio’s vehicles.
In Q2 23, the Company delivered a revenue of 1.25 Billion with a negative net income of -872.06 Million and a profit margin of -69.79%. The company’s Q2 23 performance was disappointing compared to Q1 23, where earnings declined and losses increased.
In the last trading sessions, the stock price has been trying to defend itself from the bears at the $10.50 level. Nio stock price trading in a tight range of $11.36 and $10.21. Buyers trying hard to sustain above $10. Moreover, the spike in buying volume indicates that bulls are ready to come back.
Furthermore, in the last trading session, NIO stock price opened at $10.43 and closed at $10.67. The stock price makes a high of $10.79 and a low of $10.39. Additionally, the total change was -2.02% with a trading volume of 46.266 Million.
Analyst Price Targets For Nio Stock Price
Source: Tradingview
From a pool of 39 analysts covering NIO stock, the consensus is diverse. Approximately 22 recommend Nio as a Strong Buy, 5 support a Buy rating for stock, 10 suggest a Hold position, while no analysts indicate a Sell position. A small fraction of 2 recommends a Strong Sell stance.
The average price target for Nio stock is $13.31, indicating a potential upside of 24.76% from its current price of $10.67. The price targets range from the highest of $21.82 to the lowest of $7.14.
NIO Stock Analysis, Let’s Explore Nio’s Charts
Source: Tradingview
On the daily time frame, Nio stock price is currently trading below the 50 and 200-day moving average showcasing bearishness in momentum. However, the fight between bulls and bears is an exciting point right now. Bulls are trying to surpass the price above key moving averages and bears are not ready to shift their control quickly.
MACD is trading beneath the zero line at -0.3875 and the 14 SMA line is trading at -0.1569 indicating mild beaishness in the trend.
The RSI line is trading beneath the median line but not in the oversold zone. The RSI line is at 39 and the 14 SMA line at 41 both indicating neutrality at the moment.
Conclusion
NIO stock price took a downturn after the disappointing earnings release. However, bulls are trying to sustain the price above $10.50. If the price sustains at this level and gives a breakout above $11.50 Nio stock may bounce back and start a new uptrend.
Technical Support and Resistance
Support: S1 = $10.23 and R2 = $9.50.
Resistance: R1 = $11.60 and R2 = $13.71.
Disclaimer
The research delivered in this article is for informative and educational purposes only. Do not depend on this information as financial, investment, or trading recommendations. Investing and trading involve risk. Please consider your circumstances and risk forbearance before making any investment conclusions.
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