Nio slumps 14% post earnings

Disappointing numbers on Monday & a broader sell off in tech stock has pulled Nio -14% this week

Tech (1)

 
Nio trades -14% this week on a broad tech selloff and  after disappointing earnings at the start of the week.

 Nio reported Q4 sales of $1.02 billion slightly ahead $1.01 billion forecast.

However, the adjusted loss came in at -0.14c double the -0.07c that Wall Street expected.

It wasn’t all bad, sales +133% and Nio guided for better than 20,000 deliveries in Q1 2021.

Nio partner JAC Motors is expanding production capacity to facilitate Nio’s sales growth.

However, the automotive semiconductor chip supplies shortage could limit sales in Q1 & 2.

The share price has tanked 40% since the all time high of $67 reached at the start of the year.

The chart reveals a bearish bias with support seen at $37.80 today’s low. A break through this level could see the sell off gain momentum. 

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