Nio stock price extended its decline on Monday, going down by 1.85 in the pre-market session to trade at $3.68. That drop saw it record the lowest level in the last seven months. The Chinese EV manufacturer’s fortunes trajectory are under pressure following its weak earnings report and rival BYD’s revolutionary battery charging technology.
Nio’s net loss rose by 8% to $3 billion in 2024, despite reporting a 38.4% jump in sales figures to 221,970 and a 18.2% revenue gain to $9 billion. The company gave a strong guidance for its performance in 2025, expecting to sell 440,000 units; nearly double the figure sold in 2024.
However, Nio stock price is likely to feel the weight of its issuance of 136,800,000 class A ordinary shares at HK$29.46 each, raising HK$ 4 billion. By selling such outsized shares, the company will be able to fund its pressing capital needs including expansion into new markets. However, the move also means the company has diluted the value of its shares, with a substantial increase in the number of tradeable shares.
In addition, the Nio (NYSE: NIO) faces long-term pressure from BYD thanks to the latter’s fast-charging battery technology. Nio’s battery swapping stations were initially seen as the fastest recharging option for EV drivers. However, that seems to have been rendered redundant by BYD’s tech, which charges as quickly as it takes to refuel using gas.
Nio Stock Price Prediction
The momentum on Nio stock price pivots at $3.79 and resistance at that level favours the sellers to stay in control. It will likely find initial support at $3.70. However, an extended control by the sellers will break below that level will extend the decline to test $3.61.
On the other hand, moving above $3.79 will shift the momentum to the upside. In that case, initial resistance will likely be at $3.90. Breaking above that level will invalidate the downside thesis and potentially extend gains to test the next hurdle at $4.00.
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