The Tesla of China took a hard beaten on Friday after an analyst went from Neutral to Bearish all of a sudden.
Shares of Chinese electric-vehicle maker NIO opened with a gap down on Friday, after a Goldman Sachs analyst urged caution and downgraded the stock in a new note. The stock has since dropped over 17%.
Goldman Sachs’s Fei Fang has a new price target of $7 on the electric car maker. He was neutral since October 2019, but now bearish.
This sudden bearish rate has dropped price of NIO, from yesterday’s close around $12.95, all the way down to around $10.50 at the moment.
IS THIS A GREAT OPPORTUNITY TO BUY NIO?
Retail investors are betting big on the Chinese electric-car maker, most especially those that missed the Tesla Inc! rally.
The analysts on the other hand, is cautiously bearish, as according to him; the long-term investment case rests on structural forces in China’s vast auto market that point to the growth of premium brands and electric-vehicle sales generally, as well as NIO’s specific appeal as “China’s first home-grown high-end passenger-vehicle brand.”
Investors who jumped into Nio shares on a whim a few months ago have made large profits, let’s not forget that this Stock was trading below $3 few months ago.
Another thing is, Goldman Sachs & Co. LLc owns over 10 million shares of NIO. Perhaps they are trying to push the price lower, so as to add to their bag?.
“NIO delivered 3,740 vehicles in June 2020, representing a strong 179.1% growth year-over-year. The deliveries consisted of 2,476 ES6s, the Company’s 5-seater high-performance premium smart electric SUV, and 1,264 ES8s, the Company’s 7-seater high-performance premium smart electric SUV, and its 6-seater variant. NIO delivered 10,331 vehicles in the second quarter of 2020, representing an increase of 190.8% year-over-year and an increase of 169.2% quarter-over-quarter. As of June 30, 2020, cumulative deliveries of the ES8 and the ES6 reached 46,082 vehicles, of which 14,169 were delivered in 2020.” – NIO
Are you a NIO buyer at these levels?, kindly share your opinion with us in the comment section.