NIO’s first-quarter earnings
NIO (NIO) is scheduled to release its first-quarter earnings results before the US market opens on May 28. Before we find out what Wall Street analysts expect for the company’s first-quarter earnings, let’s take a closer look at NIO and its peers’ recent stock price movement.
Ongoing sell-off in NIO stock
NIO stock started 2019 on a solid note. The stock rose 23.7% and 21.4% in January and February, respectively. However, the stock saw a massive sell-off in March after it released its fourth-quarter earnings results. In March and April, the company fell 46.7% and 4.9%, respectively.
NIO stock has extended these losses. NIO stock has fallen 19.0% month-to-date as of May 23. Investors’ low expectations from the company’s first-quarter results could be driving the stock lower. On May 23, NIO stock fell to its all-time low of $3.83 after violating an important psychological support level near $4.00.
On a YTD (year-to-date) basis, NIO stock has underperformed these Chinese companies. NIO stock has lost nearly 38.3% as of the closing on May 23. While Baidu has lost 28.5% in 2019, Tencent Holdings and Alibaba have risen 5.2% and 13.8%, respectively.
The ongoing US-China trade tensions have triggered a massive sell-off in the US-listed shares of the Chinese companies, which has pressured NIO stock.
Tesla (TSLA) has lost 41.3% YTD. In January, Tesla started building its Shanghai-based Gigafactory in an effort to gain market share in the Chinese market. In the last few weeks, analysts have warned investors that the ongoing US-China trade tensions could be negative for Tesla’s plans to expand its business in China.