Don't Buy NIO Stock on a Better-Than-Expected Q3 2019 Sales Report | The  Motley Fool

After Tuesday’s closing bell, NYSE NIO Limited (NIO) has a reality check, reporting results in the third quarter of 2020, following a 240% rocket trip, after the Chinese power car manufacturer’s increased earnings guidance in August. The corporation is forecast to record a loss of $1.14, based on the provision of between 11,000 and 11,500 cars, on a share of $4.28 billion in sales. If it is met, it will reflect a 135 percent rise relative to 2019 in the same quarter.

A surge of updates to post-earnings set fire to a broad secondary supply in August. At that point, monthly distribution figures have reached the mark and have attracted a steady stream of purchasers. But last week the rally turned its heels down 25% after the Citron Report turned pessimistic. This suggests that Tesla, Inc.’s (TSLA) costs have risen and that short interest rates have become unfavourably poor. To conquer this downdraft, it can require extraordinarily strong guidance.

The ratings of NIO

NYSE: NIO “Powerful Gain” ratings are based on six recommendations for “Purchase” and two for “Keeping” Despite outsize share profits, no analysts are suggesting that shareholders go aside. Currently, the pricing targets vary from 16 to 47$, and on Monday the stock will open to only 2$ below the high price target. This high degree of positioning poses legal concerns about valuation, but a good report will lead to higher targets.

Nick Lai set high hopes of JP Morgan analysts for the year, upgrading NIO stock from the Neutral to the Overweight, adding, “They expect a significant backlog order of the newly introduced EC6 crossover or wait for around 8 weeks. GPM is expected to top by around ~12 percent from 8 percent in 2Q20.”


In September 2018, the Shanghai maker was revealed at $6.00 on US exchanges and just two sessions later, at $13.80. That was the peak high for the next 22 months in the run-up to a continuing decline of $1.19 in October 2019. In January 2020 a moderate upturn was blocked below the print of the IPO opening and led to a downturn which dropped below the downturn in March.

The stock came back to the first quarter of June and broke out, with a solid growth of the pattern that in July hit the height of 2018. It rapidly mounted this stage, tested new support roughly 6 weeks and started in a second wave on Friday, which sculpted the bearish reverse volume. The stock trades lower than on Friday in the pre-market time on Monday, which exposes the NYSE: NIO to further pressure to buy before the confessional on Tuesday. Before investing, you can check its cash flow at