2 Reasons to Be Bullish on NIO Stock
- Nio (NIO) stock has been falling after the price hike announcement and the suspension of production.
- The production halt is temporary and many other electric vehicle (EV) makers have also hiked their prices.
- The dip in Nio stock is a great chance to take your position.
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Electric Vehicle makers in China are having trouble due to the fresh Covid-19 lockdown. Having recently announced a forced halt in EV production, Nio (NYSE:NIO) stock has suffered. The stock tumbled after the announcement since investors assumed that the company will miss production targets. NIO stock went from $23 to $19 over the past two weeks. Once the impact of the pandemic subsides, Nio will have a massive market to cater to since the demand for EVs is only going to expand in the coming years.
I think the market is overreacting to this move and has a misunderstanding that Nio has completely suspended production. However, this is not the case. Let’s dig deeper into the two reasons you should be bullish on NIO stock.
The Production Halt Was Temporary
The situation is not as bad as it is feared and I think that it is only temporary. Nio was only taking a short production halt and not closing production completely. However, we might see a dip in the delivery numbers, but it could only be for a month and not a consistent dip. According to the management, Nio will still be running but on a limited scale, and the halt is limited to the weekends only. Nio has already resumed production.
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