Nio Inc nyse Nio Stock Tumbles 7 Before Earnings Report Here's Why

NIO Inc. (NYSE: NIO) Stock Tumbles 7% Before Earnings Report – Here’s Why!

NIO Inc. (NYSE: NIO) stock plunged over 7% on Monday ahead of its fourth-quarter financial results.

NIO, the Chinese electric vehicle (EV) startup, is gearing up to unveil its fourth-quarter financial results on Tuesday before the market’s opening bell. Benzinga Pro forecasts NIO to announce a loss of 51 cents per share, following a recent quarter with mixed results where the company beat EPS expectations but missed revenue projections.

In a concerning trend for NIO, analysts at both JPMorgan and BofA have downgraded the company’s shares in 2024. Further compounding this, analysts at Mizuho have slashed their price target on NIO stock from $18 to $15 this year. Despite these pessimistic adjustments by analysts, the current average price target for NIO stock stands at $24.09, as per data from Benzinga.

NIO’s monthly delivery figures offer a glimpse into its operational performance. For the fourth quarter, the EV manufacturer reported delivering 50,045 vehicles, marking a robust 25% increase compared to the previous year. However, the momentum seemed to wane slightly in January with 10,055 vehicle deliveries, followed by a notable drop in February, where NIO delivered 8,132 vehicles, representing a decrease of approximately 33% year-over-year.

Adding to the pressure on NIO stock, Tesla Inc.’s (NASDAQ: TSLA) sales in China took a hit last month. Data from the China Passenger Car Association reveals that Tesla sold just 60,365 vehicles manufactured in China in February, reflecting a significant decline of 15.51% from January and 18.87% from the previous year.

The broader EV industry has been grappling with challenges recently, primarily due to slowing demand. Many traditional automotive manufacturers have slowed down their electrification efforts, and several other EV players have raised concerns about profitability and provided lackluster production guidance due to the demanding landscape within the EV sector.

NIO Inc. (NYSE: NIO) Stock Reaction

NIO stock plummeted 7.79% to close at $5.33 on Monday. The traders had exchanged hands with 93,158,784 (93.15 million) shares compared to the average daily trading volume of 64.78 million.