Nio Inc. ( NIO ) closed 2024 with a bang, delivering a record-breaking 31,138 vehicles in December — a staggering 72.9% year-over-year jump.

Quarterly deliveries hit an all-time high of 72,689, while annual deliveries climbed to 221,970, marking a 38.7% surge from the previous year.

Yet, Nio stock’s technicals paint a less rosy picture.

Chart created using Benzinga Pro

Nio stock recently formed a dreaded Death Cross — a bearish technical signal where the 50-day moving average dips below the 200-day moving average. Despite posting a 7.57% gain during the early hours of trading on Thursday and a 6.59% increase over the past month, NIO stock’s overall trend remains bleak.

Trading at $4.62, the stock lags behind its medium- and long-term moving averages, signaling persistent selling pressure.

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A Tale Of Two Trends

While delivery numbers suggest growth, technical indicators tell a different story. Nio's Relative Strength Index (RSI) sits at 50.32, signaling mild bearish momentum, and the Moving Average Convergence Divergence (MACD) indicator of a negative 0.1 leans bearish.

These technical signs raise concerns about whether the stock can sustain its recent upward movement or faces further declines.

What's Next?

Nio’s ambitious plans, including the launch of its executive ET9 model and the Firefly brand in early 2025, aim to fuel long-term growth.

However, with Nio stock down 44.3% over the past year, investors are looking for a decisive break above key resistance levels to regain confidence.

The Death Cross may signal caution for now, but with delivery momentum and product innovation on its side, Nio could surprise skeptics. For now, the market awaits confirmation of whether bulls or bears will dominate the road ahead.

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