Nio Inc. (NYSE: NIO) shares came up yesterday morning on news that the business will begin taking orders for its electric ET7 vehicle in January, according to a media report. Formal bookings will be taken in mid-January, with delivery scheduled for the end of the quarter.
At the time of publication, NIO was up 7.63 percent to $41.61.
Analysis of the NIO Daily Chart
In what technical traders refer to as a descending triangle, stocks appear to be climbing higher. The general trend of the stock could reverse if shares can break above resistance.
The price has encountered resistance near the lower high trendline, which has previously held the price.
Support has been located near $30.50 and may continue to be found near this level, but if the pattern holds, the stock may experience a negative push past this level.
The stock is currently trading above its 50-day moving average (green) and passed over its 200-day moving average (blue) on Monday, indicating that investor sentiment is trending bullish.
Each of these moving averages may hold as an area of support in the future.
The Relative StrengthIn DB exx (RSI) saw a slight push higher and now sits at 54 on the indicator. This demonstrates that generally, purchasing pressure is slightly higher than selling pressure.
What’s Next for NIO?
Bullish traders want to see the stock continue to rise and break through the pattern resistance level. A break over the resistance level could result in a strong bullish push and a change of trend for the stock.
Bearish traders want to see the pattern develop further and the stock fall below the $30.50 mark. If the stock begins to hold this level of resistance, the stock may experience a further bearish push in the future.
What is NIO?
NIO (Chinese: pinyin: Wèilái) is a Chinese multinational automobile manufacturer specializing in designing and developing electric vehicles. Its headquarters are in Shanghai. The company is also active in the FIA Formula E Championship, albeit since selling to Lisheng Racing, NIO has stopped supporting the team.
William Li (Li Bin) launched the vehicle company in November 2014, seven years ago.
In October 2016, NIO stated that the California DMV had granted it an “Autonomous Vehicle Testing Permit,” and that it will begin testing autonomous vehicles on public roads under the “Autonomous Vehicle Tester Program” criteria. According to the corporation, vehicles with levels three and four autonomy would be released.
NIO established its first battery swap station, branded the “Power Swap Station,” in the Nanshan District of Shenzhen, Guangdong, China, in May 2018. Only ES8 car batteries would be sold at this station.
The company filed for a US$1.8 billion initial public offering on the New York Stock Exchange in September 2018.
NIO announced $1 billion in new financing from a group of Chinese investors in late April 2020, which was required due to the company’s problems to sell its automobiles. NIO will transfer assets to a new company called Nio China, which will be based in Hefei, as part of the arrangement.
NIO, in partnership with Contemporary Amperex Technology Co., Limited (“CATL”), Hubei Science Technology Investment Group Co., Ltd., and a subsidiary of Guotai Junan International Holdings Limited, launched Battery as a Service (BaaS) and founded a battery asset management company in August 2020.
Each is investing RMB200 million for a 25% stake in the company. BaaS contributes to a 25% reduction in the purchasing price of NIO electric vehicles.
NIO announced a Norway growth strategy in May 2021, stating that automobiles would be delivered to Norway by September 2021.