NIO Down Nearly 9%, on Pace for Largest Percent Decrease Since December 2023 — Data Talk

NIO Inc. shares are trading lower on Tuesday.

In fact, shares of U.S.-listed Chinese stocks are trading lower in possible reaction to President-elect Trump’s administration picks, which could raise concerns about a tougher China stance.

According to Benzinga Pro, NIO stock has lost over 36% in the past year. Investors can gain exposure to the stock via Invesco Golden Dragon China ETF and KraneShares Electric Vehicles and Future Mobility Index ETF .

Customers in China can now expect delivery of the NIO Onvo L60 within 10-14 weeks, a slight decrease from the previous 12-16 week wait time, reported CnEV Post.

This reduction suggests that production capacity may have increased. The change was confirmed through the Onvo App. The shorter wait times indicate that NIO is scaling up production to meet growing demand, the report read.

NIO announced that it delivered 20,976 vehicles in October, including 16,657 NIO brand vehicles and 4,319 Onvo brand vehicles.

Deliveries of the first Onvo vehicle, the L60, began in late September, making October the first full month of sales for the affordable, family-oriented Nio sub-brand.

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Onvo has plans for a second electric SUV with deliveries scheduled for the third quarter of 2025. However, a report from CnEVPost claims the second Onvo model will be a six- or seven-seat electric SUV and will debut by the end of the first quarter in 2025. The report cited local tech media outlet Leiphone.

“If you think the L60 is good, then this new model is a much more competitive product,” NIO CEO William Li said during the L60 launch.

Price Action: Nio shares traded lower by 8.89% at $4.615 at the last check Tuesday.

Photo via Shutterstock

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U.S.-listed Chinese stocks Alibaba Group Holding. , JD.com, Inc. , Baidu, Inc. , NIO Inc. , Li Auto Inc. , and XPeng Inc. continue a selloff on Tuesday as geopolitical tensions pose a dampener.

The Street remains disappointed with China’s fiscal stimulus. Donald Trump’s U.S. presidential election victory has also triggered concerns about higher tariffs for China.

Last week, China launched a fiscal stimulus package valued at 6 trillion yuan ($840 billion) to relieve local governments of their hidden debt burdens, lower than the Street’s expectations of 10 trillion yuan ($1.39 billion).

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Also, central authorities agreed to issue 800 billion yuan annually in special local government bonds, totaling 4 trillion yuan over the next five years.

The Street also factored in higher tariff risks as Trump, during his presidential campaign, promised to slap tariffs on Chinese imports by up to 60%.

Economic experts have voiced growing concerns about China’s economy following recent data releases and the anticipated impact of Trump’s presidency.

UBS revised its 2025 growth forecast for China downward, projecting an expansion of roughly 4%, with a steeper decline expected in 2026, Bloomberg reports.

Nomura Holdings’ Chetan Seth told Bloomberg that while China’s debt-swap plan exceeded initial expectations, the lack of measures to recapitalize banks or boost consumer spending will likely disappoint investors.

Foreign direct investment in China fell by nearly $13 billion in the year’s first nine months.

Price Actions: At the last check on Monday, BABA stock is down 4.05% at $91.56. JD is down 7.12%, BIDU is down 4.15%, NIO is down 9.20%.

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Photo by Khanthachai C on Shutterstock

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Chinese markets nosedived on Tuesday as news surfaced that President-elect Donald Trump is eyeing two China hawks, Sen. Marco Rubio (R-FL) and U.S. Rep. Mike Waltz (R-FL), for top roles in his administration.

The potential appointments sparked fears of a tougher U.S. stance on China, sending the Chinese yuan tumbling and stock markets sharply lower in Shanghai and Hong Kong.

Yuan, Chinese Stocks Take a Beating

In currency markets, the yuan slid past 7.4250 against the U.S. dollar, a level not seen since early August. The Shanghai Composite dropped 1.39% to close at 3,422, while the Shenzhen Component fell 0.65% to 11,314.

The Hong Kong Hang Seng Index had an even rougher day, plunging 580 points, or 2.8%, to finish at 19,847—its lowest close in six weeks.

This selloff comes amid growing concerns over a hardline shift in U.S.-China relations. Trump's rumored choice of Rubio, an outspoken critic of China, for Secretary of State, and Waltz, a NATO skeptic and China opponent, as national security adviser, suggests a more aggressive U.S. foreign policy toward Beijing.

If confirmed by the Senate, Rubio, who serves on the Senate Foreign Relations Committee, would be the first Latino to hold the position. Known for his hardline stance on China, Rubio has previously advocated for more stringent measures against Beijing on everything from trade to human rights issues.

Tech and insurance stocks bore the brunt of Tuesday's market rout in Hong Kong. Major Chinese firms saw their share prices sink, with Meituan, Lenovo, China Life Insurance and Semiconductor Manufacturing International recording daily losses between 5% and 8%.

U.S.-listed Chinese companies also experienced sharp premarket declines in New York. At 8 a.m. ET, Alibaba Group Holdings Ltd. was down 3.1%, PDD Holdings Inc. dropped 2.8%, Baidu Inc. fell 2.9%, and electric vehicle makers NIO Inc. and XPeng Inc. tumbled 4% and 6%, respectively.

Weak Credit Data Adds to Market Woes

The political tension came on the heels of lackluster credit data in China, adding to investors’ anxiety. October's new loans from Chinese banks totaled just 500 billion yuan—well below the forecast of 700 billion yuan and a sharp drop from September's figures. The disappointing credit numbers, coupled with the lowest monthly credit growth in 15 years, indicate that China's domestic demand remains fragile.

"China’s economy remains weak. The government seems to lack the will, or the way, to stimulate consumer demand," said veteran Wall Street strategist Ed Yardeni, president of Yardeni Research.

"China announced a $1.4 trillion financing package on Friday. That’s a big number, but it will mostly go to cleaning up and refinancing local government debt," Yardeni added, underscoring skepticism about Beijing's ability to spur economic growth.

David Morrison, senior market analyst at Trade Nation, attributed the market reaction to a "disappointing" fiscal stimulus package announced last week by the National People's Congress (NPC). "Investors continue to respond to the underwhelming fiscal stimulus... There's now the prospect of a huge rise in tariffs, both in size and scope, on exports to the U.S. as threatened by President-elect Donald Trump," Morrison said.

Bank of America analyst Anna Zhou echoed concerns about the limited impact of recent policy measures but sounded slightly more optimistic about the future.

"Weak loan growth for both households and corporates continues to underscore fragile domestic demand," Zhou said.

"To turn credit demand around, more policy support is warranted. The recent pivot in policy stance has been a welcoming sign... we expect more measures to be rolled out in 2025 on both monetary and fiscal fronts, which could help stabilize demand and translate into better credit growth."

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Photo: Shutterstock

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Shares of U.S.-listed, China-based stocks ended the session mixed on Monday during more Chinese stimulus measures and uncertainty surrounding potentially higher tariffs from the incoming Trump administration. Here's a look at what's going on.

What To Know: The Chinese government announced another stimulus package last Friday to include six trillion yuan ($840 billion) to ease local governments' hidden debt burdens. China-based stocks ended lower Friday after the new stimulus package failed to impress investors who expected over 10 trillion yuan ($1.39 billion) in financial support.

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Additionally, President-elect Donald Trump pledged to raise tariffs on foreign goods, including import fees of up to 60% on Chinese-made goods entering the U.S. adding to the turmoil in the sector. China's economy is heavily dependent on manufacturing and exports which could decline under the proposed tariff hikes.

Elizabeth Economy, a senior fellow at the Hoover Institution, told Bloomberg TV that while Trump's proposed 60% tariffs would significantly impact China's economy, the challenge could favor China's growth in the long term.

"China is probably looking at the return of Donald Trump as short-term pain, but potentially long-term strategic gain," Economy said.

China is reportedly considering implementing a "unilateral opening" strategy to counter the tariffs by offering tariff cuts, visa exemptions and other incentives to U.S. allies in Europe and Asia.

Price Action: Alibaba Group Holding and JD.com, Inc. rose Monday after the companies reported "robust growth" resulting from their Singles' Day sales promotions. However, Baidu, Inc. , NIO Inc. and PDD Holdings, Inc. ended the session lower amid the ongoing uncertainty.

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In the latest market close, NIO Inc. (NIO) reached $5.06, with a -0.59% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 0.06%.

Shares of the company witnessed a loss of 18.43% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its gain of 16.02% and the S&P 500's gain of 4.37%.

Analysts and investors alike will be keeping a close eye on the performance of NIO Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on November 20, 2024. In that report, analysts expect NIO Inc. to post earnings of -$0.32 per share. This would mark year-over-year growth of 13.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.7 billion, up 3.41% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$1.37 per share and a revenue of $9.84 billion, representing changes of +21.71% and +26.32%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for NIO Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NIO Inc. is currently sporting a Zacks Rank of #2 (Buy).

The Automotive - Foreign industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 177, this industry ranks in the bottom 30% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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