Nio Inc slips as EV sector shows weakness despite market rebound
- NYSE: NIO fell by 1.91% during Thursday’s trading session.
- EV stocks continued to slide as Nio, Tesla, and Li Auto all struggled.
- Rivian may have just lost its competitive advantage and biggest partner.
NYSE:NIO investors were undecided on Thursday, but at the end of the day the stock closed lower once again. Shares of Nio dropped a further 1.91% and closed the trading session at $29.31. The Chinese EV stock failed to hold the $30.00 price level once again as broader EV sector weakness added pressure, despite growth stocks finally seeing some reprieve from the recent sell off. All three major indices fell into the red by the close despite a bounce back into positive territory during intraday trading. The Dow Jones was the biggest loser on Thursday falling by 170 basis points, as the markets paused ahead of the key December jobs report that is being released on Friday.
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The electric vehicle sector has been one of the hottest on the market for the better part of 2020 and 2021, but so far in 2022 it has been all downhill. Sector weakness continued on Thursday and once again it was industry leader Tesla (NASDAQ: TSLA) that was dragging its competitors down with it. Shares of Tesla dipped a further 2.15% despite a price target raise to $1,300 from Bank of America. Nio, Li Auto (NASDAQ: LI), and Rivian (NASDAQ: RIVN) were also trading lower, while Lucid Group (NASDAQ: LCID) and XPeng (NYSE: XPEV) managed to eke out gains.
NIO stock news
Speaking of Rivian, shares of the electric truck maker dipped below its IPO price during intraday trading on Thursday. The reason? Despite Bank of America being bullish on the stock as well, it was the report that Rivian’s biggest competitive advantage was signing a partnership with another EV maker. Amazon (NASDAQ: AMZN) and Stellantis, the parent company of Chrysler and Dodge, are partnering to release the Dodge Ram ProMaster EV to the consumer market. Not only did Amazon sign on with another EV maker, but it is to make another electric truck model. Shares of Rivian were down 2.98% on Thursday.
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