What's Going On With Nio Stock?

NIO Inc NIO shares are making new 52-week lows on Tuesday, adding to losses of nearly 20% over the last month. Here’s a look at what’s going on.

What To Know: Nio shares traded higher in December after the company launched its new ET9 sedan at its Nio Day event and unveiled its fourth-generation power swap stations. The stock also got a boost from the People's Bank of China, which said it would increase macroeconomic policy adjustments in an effort to support the economy.

However, Nio is off to a slow start in 2024. Nio shares pulled back at the start of the new year after the company announced a repurchase right notification for its 0% convertible senior notes due 2026.

Last week, Goldman Sachs initiated coverage on Nio with a price target of $8.40 and warned of potential growth challenges. BofA Securities analyst Ming Hsun Lee also downgraded Nio from a Buy rating to a Neutral rating.

According to Benzinga data, 11 analysts have positive ratings on Nio and six have neutral ratings. The current average price target is $27.34.

Nio shares may also be facing selling pressure after Tesla cut prices on its vehicles in China again last week. The EV maker reportedly slashed prices on some of its vehicles by as much as 6% last week amid increasing competition in China.

Check This Out: Tesla Price Cuts In China Spooks Investors, Lucid Skids To Record Low Amid Falling Q4 Production, XPeng’s Flying Car And More: Biggest EV Stories Of The Week

NIO Price Action: Nio has now given back all of its gains from December. After falling through support Tuesday morning, Nio shares hit new 52-week lows.

The stock was down 5.86% at $6.75 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Nio.