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Is it time to put it in about-face with Nio (NYSE:NIO)? Afterwards a abiding rally, a abrogating banderole is sending NIO banal bottomward 8%. What was the headline? And what does it ultimately beggarly for investors?
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Remember, Nio has been one of the best-performing stocks on Wall Street lately. Amid atypical coronavirus and presidential acclamation astriction in the United States, investors accept begin abundance in Nio and its Chinese electric agent peers. Importantly, absorbing commitment numbers, annual balance and EV advancements accept backed up this group. Aloof today, we saw Li Auto (NASDAQ:LI) and Xpeng (NYSE:XPEV) assemblage college on some of these account items.
So with all of this alive for Nio, why are shares coast on Friday? Well, investors can acknowledge short-selling abutting Citron Analysis for the decline.
Two years afterwards Citron recommended NIO stock, the abutting says it is affairs the plug. So what explains the change in sentiment? In an already-trending report, the abutting claims that shares will anon abatement aback bottomward to the $25 area acknowledgment to aggressive agent appraisement by Tesla (NASDAQ:TSLA) and its “unchartered” rally. As Citron put it, the accepted allotment amount could “never be justified” by the Chinese EV market.
$NIO to $25 adventure https://t.co/FQYzY9brst
— Citron Analysis (@CitronResearch) November 13, 2020
Unsurprisingly, those adventurous words are sparking fear. NIO banal has had an absurd adventure in 2020, announcement assets of added than 1,000% in the year to date. In fact, in aloof the aftermost month, shares accept climbed 100%. Ahead of balance abutting week, investors accept been advantageous abutting attention. Can Nio accumulate revving up, or is Citron Analysis right?
As you accede the short-selling address from Citron Research, be abiding to bethink that there are added perspectives. Yes, alike acknowledging the acutely aberrant assemblage in NIO stock, there are analysts who anticipate shares will accumulate aggressive higher.
In fact, absolute account had NIO banal aggressive college beforehand this morning. Investors abstruse that RWC Asset Management, a London-based company, was diving into Chinese equities. Nio fabricated the top of the new purchases account forth with Pinduoduo (NASDAQ:PDD) and New Oriental Education and Technology Accumulation (NYSE:EDU). This aloof goes to appearance how airy some of these hot names are in the banal market.
InvestorPlace Markets Analyst Luke Lango is additionally bullish on NIO. Beforehand in October, he advised the abeyant for the electric car bazaar in China, acquainted that it is the better automotive bazaar in the absolute world. His conclusion? Simply put, Lango believed at the time that Nio could anon hit $60.
In added words, there is no acumen for EV beasts to panic. Do your own analysis and accede the Citron address adjoin several added arguments.
On the date of publication, Sarah Smith did not accept (either anon or indirectly) any positions in the balance mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.
The column Nio News: Why NIO Banal Is Coast on a Big Analyst Call appeared aboriginal on InvestorPlace.
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