What's Going On With Nio Stock Wednesday?

NIO Inc NIO shares are trading lower. Multiple analysts on Wednesday cut price targets on the stock.

What To Know: JPMorgan analyst Nick Lai maintained Nio with an Underweight rating on Wednesday and lowered the price target from $5 to $4.80. Barclays analyst Jiong Shao maintained Nio with an Equal-Weight and lowered the price target from $8 to $5.

The price target cuts come a day after Nio reported fourth-quarter financial results.

Nio reported fourth-quarter sales of $2.41 billion, which beat analyst estimates of $2.29 billion. The EV maker reported an adjusted loss of 39 cents per share, which beat estimates for a loss of 51 cents per share, according to Benzinga Pro.

Nio reported fourth-quarter deliveries of 50,045 vehicles, up 25% on a year-over-year basis, but down 9.7% from the third quarter.

Nio may also be facing selling pressure as EV deliveries across the space continue to fall in China. According to data from the China Passenger Car Association, Tesla sold just 60,365 vehicles made in China in February, down 18.87% on a year-over-year basis.

The broader EV industry has been battling headwinds in recent months amid slowing demand. Many of the legacy OEMs have pumped the brakes on electrification efforts and several other EV players have raised profitability concerns and delivered disappointing production guidance given the challenging environment.

Check This Out: EV Deliveries Continue To Fall In China As The Competitive Battle Rages On

How To Buy Nio Stock

By now you're likely curious about how to participate in the market for Nio – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Nio, which is trading at $5.42 as of publishing time, $100 would buy you 18.45 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

NIO Price Action: Nio shares were down 1.64% at $5.39 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Nio.