Why Did NIO’s Stock Slide 11% Today?

The day started with a depressing -5% in pre-market and slid deeper in todays session. Nio is down over 11% at the time of writing at $44. Early this morning, the company said it saw electric vehicle deliveries slowing down in Q1. Then, JP Morgan announced that it lowered its price target for NIO to $70 from $75. The SP500, which started the day virtually unchanged, is now down 0.2% at 3895, reflecting an low market mood following Monday's rally that saw the index post its largest daily percentage gain since June last year.

The EV maker announced its Q4 earnings results on Monday after the market closed. EPS was -$0.16 versus an estimate of -$0.07 which clearly disappointed investors. Turn over came in slightly ahead of expectations at $1.03 billion versus $1.01 billion. This is a rise of 133% from last year.

NIO had a very good 2020 with turn over more than doubling, with a total 2020 vehicle deliveries were 43,728 as against 20,565 in 2019. For Q1 2021, the Company expects: "Deliveries of the vehicles to be between 20,000 and 20,500 vehicles, representing an increase of approximately 421% to 434% from the same quarter of 2020, and an increase of approximately 15% to 18% from Q4 of 2020.

NIO Technical analysis

Based on the latest new, we expect a bearish trend for few days, but there should be very strong support around the $42 mark. It could be a bumpy ride for a few weeks, but if it can break up above $52 then we should see the stock break out into a bullish trend.