3 reasons why NIO remains attractive to investors even when its price is falling from its 1-month high of $16++ to $10++.

Hello Mooers!

For the past 30 days, it has been a roller coaster ride for $Futu Holdings Ltd (FUTU.US)$ Mooers who invest in NIO ( $NIO Inc (NIO.US)$ , $NIO-SW (09866.HK)$ , $NIO Inc. USD OV (NIO.SG)$ ). In the first few days of August 2023, Mooers see NIO rising to almost $16. However, for the past few days, NIO have been moving downwards and now it is priced in the range of $10 to $11.

Although NIO is on the downward trends for the past few weeks, it continues to be attractive to investors.

Without further ado, here are 3 reasons why it continues to remain attractive.

The first reason is that its vehicle delivery has been on the rise for the past 3 months. This is a good news for investors as it shows that the business continues to grow for the EV startup.

NIO vehicle delivery till 07/2023

The second reason is that a 4.5 stars analysts from the BofA ( $Bank of America (BAC.US)$ ) Securities had given it a buy rating with a target price of $16.2.

Buy rating with target $16.2 for NIO

This means that if Mooers were to invest $10,000 into NIO and NIO reach $16.2 in 12 months time, Mooers would be sitting on a profit of at least $4,727.27!

With this money, Mooers can enjoy unlimited beer tasting and live outdoor music at Jackson Hole. Details about the event are in the link as follows.

https://www.jacksonhole.com/bikes-and-brews

Jackson hole events 26 Aug 2023

The third reason is that institutional investors have increased their position in NIO, and among them, the Government of Abu Dhabi has bought in 124.83M of shares, Blackrock 334.14K and the Vanguard Group 388.79K of NIO shares.

Institutional investors bought NIO

Although these are good news, investors continue to remain cautiously as NIO have yet to report their earnings, which is 6 more days from now. That could be one of the reasons why there was more net outflow in August 2023.

NIO net outflow till Aug 2023

However, it may not be surprising if NIO beat expectations in their earnings report, given that Tesla ( $Tesla (TSLA.US)$ ), Lucid ( $Lucid Group (LCID.US)$ ), Li Auto ( $Li Auto (LI.US)$ ) and Rivian ( $Rivian Automotive (RIVN.US)$ ) all have better revenue (yoy) in their earnings report.

Tesla earnings report 20 Jul 2023

Lucid earnings report 8 Aug 2023

Li Auto earnings report 8 Aug 2023

Rivian earning report 9 Aug 2023

To summarize, it is expected that the price resistance for NIO to be around $11.79 to $14.29, with support at around $8.19 to $10.69 before the earnings report on 29 Aug 2023.

NIO price resistance and support

Hmm... I wonder how NIO will perform after its earnings report.

We have come to the end of today's topic. Remember to show your support by follow, like, share and comment on this post and as always, don't forget to DYODD (Do your own due diligence) when making any kind of investment.

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