On June 20, NIO (NIO) is trading on a bullish note for the fourth consecutive session. At 11:00 AM ET, NIO stock has risen 8.1% at $2.96. Earlier on June 20, the stock rose above the psychological level of $3.00 and posted a day high of $3.05—the highest level in the last 11 sessions. On June 14, NIO stock posted its all-time low of $2.35. Since then, the stock has seen a strong bullish stock price movement. The stock has risen 26% from its lowest level.
In contrast, Tesla (TSLA) fell 2.4% on June 20. Goldman Sachs cut its target price on Tesla 21% to $158 from $200. The bank raised concerns about Tesla’s car demand. The company is getting ready to start producing Model Y—its lower-cost SUV.
Why NIO could be rallying
On June 18, a Thomson Reuters brief suggested that NIO is about to start delivering the ES6—its second mass production electric car model. The ES6 update could be driving NIO stock up. A recent US market rally, driven by renewed trade optimism and the Fed’s dovish comments, is helping NIO sustain its gains.
The company launched the ES6, its second electric SUV, on December 15, 2018. The SUV is priced lower compared to the ES8—Tesla’s first mass production SUV model.
Investors reacted negatively after the launch event. NIO stock fell nearly 9% on December 17. The US stock market was going through a massive sell-off due to heightened US-China trade tensions and investors’ low expectations from the Fed’s pending interest rate decision in December. These factors could have caused NIO stock to crash after its ES6 car launch event.
As of the closing on June 19, NIO stock was still down 46.3% on a year-to-date basis, while Tesla was trading with 19.1% losses.