Nio stock price pre-earnings decline extended on Friday, hitting five-week lows of $3.54 before recovering some ground to trade at $3.58 at the time of writing. However, there was more at play, with fear sentiment injected in the market following an overnight US Appeals Court ruling reinstating President Donald Trump’s trade tariffs halted by the Court of International Trade earlier in the week.
The trade tariff FUD did not stop there. On Wednesday, US Trade Secretary Scott Bessent added pressure after stating that trade negotiations between the United States and China had stalled. Those comments resuscitated fears of a resumption of harsh triple-digit trade tariffs and counter-tariffs seen in early May.
According to Bessent, the trade talks will likely need direct talks between Trump and his Chinese counterpart, Xi Jinping. Benchmark Hang Seng Index closed the week at -1.20%, while the SSE Index ended the session at -0.47% in reaction to the news.
Meanwhile, Nio stock price has an additional risk of increased volatility in the leadup to its earnings release on Tuesday, June 3. Mean analysts’ estimate forecast that the EV maker will report a year-over-year revenue jump to CNY 12.528 billion from CNY 9.91 billion. However, its EPS is expected to be a loss of CNY 2.56. While the company has diversified and expanded from its initial luxury-focused business model, it continues to struggle with operational inefficiencies.
The revenue jump will be a direct result of a spike in deliveries, primarily propelled by cheaper models like the Onvo and Firefly. However, tightening EV market competition, trade barriers and supply chain constrains have limited the company’s upside, and will likely continue subduing Nio (NYSE: NIO) stock price in the medium term.
Nio Stock Price Prediction
Nio stock price pivots at $3.68, with the momentum signaling control by the sellers. The first support will likely be at $3.53, but an extended control by the sellers will send the action lower to test $3.38.
Conversely, going above $3.68 will invite the buyers to take control. In that case, the upward movement will likely meet initial resistance at $3.80. Breaking above that level will invalidate the downside narrative. Further control by the buyers could extend gains to test $3.90.
The post Nio Stock Price Extends Downside, Upcoming Earnings Unlikely To Trigger A Reversal appeared first in UK on InvestingCube.