financetom
Business
financetom
/
Business
/
Why NIO Stock Is Falling
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Why NIO Stock Is Falling
Oct 17, 2024 12:11 PM

NIO Inc ( NIO ) – ADR shares are trading lower by 6.72% to $5.14 Thursday and lower by 16% since Monday’s open, as investors continue to express doubts about China’s latest stimulus measures.

What’s Happening: Despite Beijing announcing support for low-income households and the property market, the lack of concrete figures and specific help for the electric vehicle (EV) sector left markets unimpressed.

NIO, a key player in China's EV market, relies on government subsidies and strong consumer demand. While earlier reports suggested a potential 2 trillion yuan ($284.4 billion) stimulus, no definitive commitments materialized. This raised concerns that economic uncertainty could weaken demand for high-end EVs.

Adding to NIO's challenges are U.S.-China tensions, which restrict access to vital technologies like semiconductors and AI, critical for EV innovation. With slowing economic growth and increased competition, NIO's stock reflects market worries that the stimulus may fall short in boosting the EV industry and overall recovery.

What Else: Meanwhile, per a report form the Associated Press, China on Thursday said it plans to expand financing for housing projects on a “white list” to 4 trillion yuan ($562 billion) and will redevelop 1 million urban villages, as part of efforts to revive its struggling property sector.

Officials noted that the housing market has “bottomed out” after three years, with recent data showing a rise in property sales, following measures to stabilize the sector after a borrowing crackdown.

Read Also: What’s Going On With Marvell Technology Stock?

How To Buy NIO Stock

By now you're likely curious about how to participate in the market for NIO – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of NIO, which is trading at $5.25 as of publishing time, $100 would buy you 19.05 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, NIO has a 52-week high of $9.57 and a 52-week low of $3.61.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
WiSA Technologies to Acquire Assets From Data Vault Holdings for $210 Million
WiSA Technologies to Acquire Assets From Data Vault Holdings for $210 Million
Sep 6, 2024
05:19 AM EDT, 09/04/2024 (MT Newswires) -- WiSA Technologies ( WISA ) said Wednesday it has agreed to acquire the Datavault intellectual property and information technology assets of privately held Data Vault Holdings for $210 million. Of the deal consideration, $200 million will be paid in the form of 40 million of WiSA's ( WISA ) common shares to be...
Mainz Biomed Expands AI Collaboration With Liquid Biosciences to Include Pancreatic Cancer Test
Mainz Biomed Expands AI Collaboration With Liquid Biosciences to Include Pancreatic Cancer Test
Sep 6, 2024
05:32 AM EDT, 09/04/2024 (MT Newswires) -- Mainz Biomed ( MYNZ ) said Wednesday that it expanded its collaboration with Liquid Biosciences to include PancAlert, Mainz Biomed's ( MYNZ ) detection test for pancreatic cancer. The company said the expanded collaboration will allow it to leverage Liquid Biosciences' proprietary artificial intelligence analysis technology platform EMERGE to expand and optimize novel...
Update: Citigroup, Goldman Sachs, JPMorgan Reportedly Tapped by ByteDance for $9.5 Billion Asia Corporate Loan
Update: Citigroup, Goldman Sachs, JPMorgan Reportedly Tapped by ByteDance for $9.5 Billion Asia Corporate Loan
Sep 6, 2024
05:30 AM EDT, 09/04/2024 (MT Newswires) -- (Updates with Goldman Sachs' ( GS ) response in the fourth paragraph.) Citigroup ( C ) , Goldman Sachs (GS), and JPMorgan Chase ( JPM ) will be selected by TikTok owner ByteDance for a $9.5 billion dollar-denominated corporate loan, two media outlets reported Monday, citing unnamed sources with knowledge of the situation....
Marathon's Detroit refinery workers to go on strike, union says
Marathon's Detroit refinery workers to go on strike, union says
Sep 6, 2024
Sept 4 (Reuters) - Teamsters members working at Marathon Petroleum's ( MPC ) Detroit refinery will go on a strike starting Wednesday after months of pay and safety related negotiations with the company did not yield results, the union said. Marathon said it does not expect the strike to impact operations at the facility. We are fully prepared and have...
Copyright 2023-2026 - www.financetom.com All Rights Reserved