BYD and NIO: Big! – Financial trends

Dear reader,

Both BYD and NIO had a bad start to the year on the stock market: shares of the Chinese automakers fell sharply. Not surprising, as both had previously reported large drops in births. But that changed in March, the numbers increased again, both for the established manufacturer and for the newcomer. But when… Share in BYD now it has fought back from below more than $20 to above $26, the situation in NIO is getting worse. The stock price fell recently, hitting a new multi-year low on Friday.

NIO is trading at its lowest level since May 2020

US$4.09, the lowest level since May 2020, was still on the price list on Friday. Share Nine. Finally, it ended trading in New York at $4.11, a loss of 7.85 percent. If the legal dispute with Audi over the NIO ES6, ES7 and ES8 model names, which was lost at the Munich Regional Court on Friday, caused this? Rather impossible. What seems to be more important is that the British Barclays downgraded NIO shares from “equal weight” to “underweight” at the beginning of the month and at the same time reduced the price target from $5 to $4. Analyst Jiong Shao was disappointed with the issuance figures. of products from March.

However, this was not completely understood. Although the NIO was very disappointing in terms of sales at the beginning of the year, with only 8,132 vehicles sold worldwide in February, shipments had improved to 11,866 units in March, also an increase of 14.3 percent year-on-year. The share price rebounded, rising from $4.50 in late March to $4.75, before moving closer to Barclays’ low price target. The decline since its peak in August has been substantial.

NIO and CATL collaboration without impact

After a record in July 2023 with 20,462 shipments, the mood was still positive, with NIO shares trading at a healthy $16. But NIO is now worlds away from these sales figures and share price. In less than nine months, the startup has lost nearly 75 percent of its market value.

Nio Aktie chart

At least this week, NIO was once again unable to benefit from supposedly good news, such as the opening of a Smart Driving Technology Center near Berlin or an agreement to collaborate with Chinese battery manufacturer CATL to research batteries that last as long as possible. This was clearly different from the main competitor.