Few days ago NIO reported their Q3 2020 results that were through the roof. But some people like Jim Cramer are not excited about this Tesla of China thing everyone is talking about.
What happened on Wednesday?
Entire Chinese EV sector, Xpeng, Li Auto, Niu Technologies and Nio are taking a beating on Wednesday.
NIO shares are down almost 7% in the first hour of the day, NIU stock is also down almost 7% while XPEV lost more than 5%.
As I noted earlier, NIO stock was ready for a major pullback. While 7% is not too much if you are long term investor, for majority of late comers this is a significant loss in their portfolio.
The writing on the wall was a statement from a couple of days ago when Jim Cramer said that NIO is just a concept, rather than a real company. Wow! What a silly statement, but this was a clear message that you should get out for the time being.
Nevertheless, most market pullbacks create tasty opportunities, and this one is no exception. A number of EV stocks are ripe for the picking.
NIO, XPEV,Li,NIU price prediction
Usually when Tesla (TSLA) shares go up, Chinese EV companies follow the lead, but this time is different. NIO stock price could easily bounce back tomorrow, and it probably will, but another major fall could lead the shares to a longer recovery. And then, one month before the next earnings call we could see momentum picking up again.