$NIO TOP 20
Added 2023-10-25 15:44:17 +0000 UTC$NIO had a strong day yesterday jumping over 6% as the market was filled with optimism leading into earnings, $LI and $XPEV also performed well and the 3 Chinese EV companies climbed well together, we can see on the chart that the price bounced from the buy zone and went as high as the 50 Day MA, it then finished the day above the 50 Day MA.
Unfortunately today, with the market opening deep in the red and the news that $NIO has acquired local automaker Leopard, earning itself a car production certification, means that $NIO will likely be eyeing up buying assets from JAC, as they intend to sell their factory where $NIO's cars are built.
There have been a number of reports about this and the potential benefits of this move, overall it should help reduce $NIO's overall costs as it will not need to pay JAC for the use of their factory.....but this will involve paying a one off fee to purchase the factory, I believe it is around $600 million.....so this will eat into $NIO's cash reserves, this is possibly why $NIO is down -5% today.
We can see that $NIO could not hold above the 50 Day MA and is back now between the 50 Day MA and the buy zone limit at $7.38.
Another day in the life of a $NIO holder.
Comments
As long as it hold above $7 and if NIO can improve sales and guides for better margin and deliveries in the next quarters, they will do well. Focused on how they do in 2024 - lots of macro factors to contend with.
CWT7
2023-10-26 11:45:54 +0000 UTC
