A sustainable future is among the most crucial areas of development the governments and organizations are working on globally. From Ford (NYSE: F) to Tesla (NASDAQ: TSLA), all of them are introducing innovative automotive ideas to make this future a reality. Nio Inc. (NYSE: NIO), a Chinese and EV focused company, recently announced that they have manufactured 300K vehicles to this date. However, NIO stock has seen a considerable downfall this year.
Nio Inc Expanding in Europe
The decline is a combination of different factors like the war in Ukraine, inflation, China’s covid policies and more. The company may see a positive change given that the nation will loosen their pandemic policies to allow the transportation to operate more freely. According to a Deutsche Bank analyst, the company can achieve Q4 guidance considering their increased production.
Moreover, the company will increase the number of battery swapping stations across Europe. They claim that the chargers hold capacity to charge a battery within thirty mins and battery swaps in 3. The organization is currently ahead of other Chinese electric vehicle makers exporting to European territory.
Nio’s battery swapping facilities help the company to stand apart from the crowd and allow the company to give a tough competition to organizations like Tesla, Polestar (NASDAQ: PSNYW) and more. They plan to put 120 more stations in Europe by the end of 2023.
NIO Stock Price Action
The company shares were trading at the market price of $33.8 during the beginning of the year. However, NIO stock has lost around 65% value since then, currently changing hands at $12.61 at the publication time. The bollinger bands present that the share has broken support levels multiple times throughout 2022. The initial breakdown happened in the first month only.
The trend continued and a couple of breakdowns followed in the next couple of months. In March 2022, investors started buying NIO stock which helped the price to re-enter the $20 and $23 trading ranges. It broke the barriers in May 2022 again, slashing the price by almost half.
Recently, a breakout is visible on November 30, 2022, following the Chinese officials’ announcement to boost covid vaccination in the country. Currently, NIO stock holds a resistance at $14 and a support level at $9. Regression trend shows the price has seen a fair share of buyers and sellers may enter the market.
According to Fortune Business Insights data, the EV industry was valued at $287 Billion. Experts believe that the sector may reach $1.3 Trillion by 2028 at CAGR of 24.3%. The growth might appear imminent considering governments’ several initiatives to lower the carbon footprints across the globe.
All the views in the article solely belong to the author. Readers are advised to conduct their own research before making any investment.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.