Nio stock price extended its downside on Thursday, trading at $3.75 at the time of writing after dropping by 1.7%. The EV maker faces headwinds as the wider global market gasps for air following the latest round of US trade tariffs. Nio’s decline is exacerbated by weak earnings disclosed last week.
US tariffs against Chinese imports hit 54% after US President Donald Trump added 34% to the previous 20% tariffs, setting the stage for an escalation of the trade war. Nio (NYSE: NIO) embarked on expansion outside its primary market in China and Europe in 2024, and the tariff ecosystem has complicated that plan. The company had plans to enter the US market in 2025, but Trump’s protectionist policies for the US auto industry is likely to propel it to postpone.
Nio stock price also faces long-term pressure to match up to BYD’s superfast charging technology that have almost certainly rendered Nio’s battery swapping stations redundant. Despite the weak earnings and battery charging tech headwinds, Nio’s sales figures hold much promise on its growth trajectory.
The company sold 42,094 vehicles in the first quarter of 2025, up by 40.1% year-on-year. However, the 15,039 sold in March is a 26.7% jump year-on-year, it was a substantial decline from the average monthly figures reported between May and December 2024. That doesn’t augur well for Nio stock price, considering that its cheaper Onvo has been in the market for the last five months.
Nio Stock Price
Nio stock price pivots at $3.75 and the momentum favours the sellers to stay in control. The stock will likely find the first support at $3.60, but a stronger downward momentum will break below that level and test $3.50.
On the other hand, the price will head to the upside if the price breaks above $3.75. That will likely see the price head higher and encounter the first barrier at $3.85. The upside narrative will be invalid if the price breaks above that level. Furthermore, the resulting momentum could test $3.95.
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