NIO (NIO), the Chinese electric car company, held its NIO Day 2018 on Saturday, December 15 in Shanghai. On this occasion, the company also launched its second mass-market electric car, the ES6. However, NIO investors don’t seem to be pleased with the new car, as its stock traded on a negative note on Monday after the car launch.
NIO stock fell
On December 17, NIO stock fell about 8.7% to $7.03. Since its listing on the New York Stock Exchange in September 2018, NIO stock has been highly volatile. Right after its NYSE debut, it posted a high of $13.80 on September 14, but these gains didn’t last for long, and the stock fell back to price levels of below $6.0 in October. After losing about 15.5% in October, it recovered sharply by 30.7% in November. This high volatility makes NIO stock unattractive to conservative investors, as its high volatility also means high risk for investors.
NIO’s recent stock drop might also partly be a result of the intensifying sell-off in the US equities market. As of December 17, NIO has already fallen by 8.8% month-to-date. On a quarter-to-date basis, it was trading with 0.7% minor gains. By comparison, its US peer (XLY), Tesla (TSLA), was able to maintain impressive 31.6% quarter-to-date gains. Other Chinese companies Alibaba (BABA) and Baidu (BIDU) lost 12.6% and 25.7% quarter-to-date, respectively, while Uxin (UXIN) has seen 23.7% gains.
In the next part, we’ll look at some key highlights of NIO’s ES6 car model.