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NIO Inc NIO shares are trading lower Tuesday after Deutsche Bank slashed its price target on the stock ahead of earnings.
What Happened: Deutsche Bank analyst Edison Yu maintained NIO with a Buy rating on Tuesday and lowered the price target from $39 to $20, citing production slowdowns, as well as increased competition.
Nio is scheduled to report its third-quarter financial results before the market opens on Nov. 10. The company is expected to report a net loss of 16 cents per share on quarterly revenue of $1.79 billion, according to Benzinga Pro.
See Also: Lordstown Motors Shares Are All Over The Place After Q3 Earnings: Next Up, Lucid Group
What Else Is Happening: Nio shares have faced selling pressure this week after Chinese officials reiterated the country’s commitment to its COVID-19 policies.
On Monday, Chinese officials signaled that the country plans to proceed cautiously despite the deepening impact of its policies. Moreover, a timeline for a return to normal was not put in place.
Nio competitor Tesla Inc TSLA also reportedly stole the show at China’s world’s largest import trade fair over the weekend. Tesla attracted “huge crowds” at China’s International Import Expo, per the South China Morning Post.
Related Link: Tesla Drawing Huge Crowds At Shanghai Expo Shows ‘Chinese Consumers And US Products Are Still Intertwined:’ Expert
Nio is a China-based electric vehicle maker targeting the premium segment.
NIO Price Action: Nio has a 52-week high of $33.80 and a 52-week low of $8.37.
The stock was down 4.52% at $10.48 at time of publication.
Photo: courtesy of Nio.
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Image and article originally from www.benzinga.com. Read the original article here.