NIO shares have taken a hit in recent days, posting a small gain of just one percent year-to-date. Shares of electric car makers, including Chinese e-car startup NIO, have suffered losses over the past year. NIO’s stock has posted a loss of more than 63 percent, compared to Tesla, which has gained more than 66 percent year-to-date.
Is the hype over?
It is believed that investors will no longer blindly follow the hype when investing in e-car stocks, but will conduct a more detailed market analysis and pay more attention to fundamental factors. Experts believe that the market is on the verge of consolidation, which could lead to the thinning out of smaller companies.
From a chart perspective, the downward trend that has been in place since January 2021 continues. The price has bounced off the trend line and dropped below the 50-day line (EMA50). At the end of last week, the price touched down on the flat uptrend from the end of October. Now the bulls absolutely have to react, otherwise the share threatens a fall below the 10.00 dollar mark and a setback to last year’s low at 8.38 dollars.