Shares of NIO (NYSE: NIO) Pierce has since risen more than 10% outside the gate this morning Expang And Li Auto Toe Reported better than expected earnings. This sent NIO stock above $ 50 per share as it promised long-term sales to a group of “new energy” vehicle manufacturers.
However, as NIO prepares its own third-quarter earnings report later this month, Andrew Left, a short-seller at Citron Research, says he is “pulling the plug” on the electric vehicle (EV) manufacturer and sees the stock at 25 25 a share. Is. Shares of NIO have risen 1,100% to date.
The NIO comes from the ES6 assembly line. Image Source: NIO.
Citroen EV was the manufacturer’s initial booster, while recommending it to investors two years ago when shares were 7. But analysts released an update today stating that NIO’s position “can never be justified by its current position in the China EV market or its near-term prospects.”
The left argues that NIOs are sensitive TeslaNo. (Nasdaq: TSLA) Model Dell Y prices in China. Analysts believe that, for model Y, 000 000, 000. To, 000 price ,, 000. Of course the price will be difficult for NIO’s ES hat hatchback, now analysts believe that Tesla can keep its price as low as, 41,000, which makes the Hammer even tougher than its rival NIO’s valuation.
Even a new round of EV price cuts could seriously undermine NIO’s profitability opportunity, dramatically changing the course of its stock price.
Elon Musk, CEO of Tesla, considered increasing the capacity of his Shanghai factory to help achieve 500,000 units this year, a record of progress made by his Chinese team “beyond all reasonable expectations”.
Citron expects the NIO craters to be as low as expected, but Tesla’s production improves and puts more pressure on the Chinese EV manufacturer, so the left’s “turn from NIO” call may be a smart one.
