Nio Stock price edged up in the pre-market session on Monday ahead of its quarterly earnings release. The Chinese EV company will announce arguably the most consequential earnings results in its history on Tuesday, being the first one since it diversified from the luxury-focused business to the mass market. The stock was at $3.57 at the time of writing, up by 0.7%.
Markets opened the week on a weak footing, with risk aversion prevailing as the United States and China renewed their trade tariff tiff. The two Asian markets where Nio stock is listed, Hong Kong’s Hang Seng Index and Singapore’s Straits Times Index ended the day’s session down by 0.57% and 0.10% respectively.
Market analysts forecast that Nio (NYSE: NIO) will announce a $783 million net loss for the quarter ending March 31,2025. The company started shipping its cheaper Onvo models late last year and another mass market model Firefly started selling this year. Nio is counting on these models to break even by the end of 2025 and potentially start generating profits in 2026.
However, while the cheaper models come with wider margins, competition in the EV space has been heating up. Notably, local rivals like Li Auto, Xpeng, BYD and Zeekr have been aggressive on that front. In addition, BYD’s ultra-fast “Megawatt” charging technology has been more of hit than Nio’s battery swapping tech.
While the company’s revenue is expected to grow in response to the 40% increase in the number of units sold, investors will likely pay greater attention to its margins. A sign of continued strain in its new business model could bring headwinds to Nio stock price post-earnings release. Conversely, a forecast-beating revenue report coupled with increased margins could inject significant upward propulsion.
Nio Stock Price Prediction
Nio stock price pivots at $3.55 and action above that level favours the upside to prevail. The first resistance will likely be at $3.64, but a stronger momentum will break above that level and potentially send the stock higher to test $3.71.
On the other hand, the price could break below $3.55 and shift the momentum to the downside. That will likely see the first support come at $3.50. The upside narrative will be invalid if the price breaks below that level. Also, an extended control by the sellers could send the price lower to test the second support at $3.42.
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