Why Nio Stock Is Sinking Today
After a stunning rally last week, Nio (NYSE: NIO) stock opened Monday on a quiet note and was trading down 5.5% as of 10:45 a.m. ET. An analyst downgrade just ahead of earnings is hitting investor sentiment even as Nio just confirmed it will not follow the footsteps of rival Tesla in increasing prices of its electric vehicles (EVs).
Nio is set to report its fourth-quarter and full year 2021 earnings after market close on Thursday. In a new research note sent to investors, Deutsche Bank analyst Edison Yu offered his views on Nio's upcoming earnings report.
Among other things, Yu expects soft first-quarter guidance from Nio and expects the company to deliver just about 25,000 vehicles in the quarter, or almost the same number as it delivered in the fourth quarter. The challenges posed by the COVID-19 lockdown in China are largely to blame.
Source Fool.com
