The “Chinese Tesla,” Nio Inc Has Tumbled To 52-Week Lows & Into Penny Stock Territory
A storied past has helped get Nio Inc. (NIO Stock Chart) on the radar of many penny stock traders over the last 12-18 months. In fact, roughly one year ago, shares of Nio were trading as high as $13.80. The company may have flown too cl
A flurry of ambulance chasing legal firms are “reminding” investors that they are putting class action suits together against the electric vehicle company. What seems to have started the snowball of negative publicity?
A quick look back at the company’s stock chart will show that it dramatically dipped in price after it reported earnings on March 5, 2019.
“The sequential slowdown in vehicle deliveries in January and February was mainly caused by accelerated deliveries made at the end of last year in anticipation of EV subsidy reductions in China in 2019, the seasonal slowdowns surrounding the January 1st and Chinese New Year holidays, as well as the current slowdown of macro-economic conditions in China, particularly in the automotive sector.”Nio Inc. Company Statement.
The so-called Tesla of China posted a larger-than-expected loss in the fourth quarter and explained that it had also experienced “a greater-than-anticipated slowdown in monthly deliveries” of its ES8 sport-utility vehicle. This has not sat well with investors. On the brighter side, anyone who’s got a penny stock screener set up will more than likely come across this company.
So, on the bright side, maybe this drop opened up new attention from investors who would have not seen the company, otherwise. Where do you see shares of Nio by the end of the second quarter?