{"id":2615,"date":"2020-03-02T05:19:51","date_gmt":"2020-03-02T05:19:51","guid":{"rendered":"https:\/\/www.maxlee.info\/blog\/?p=2615"},"modified":"2020-04-11T05:40:07","modified_gmt":"2020-04-11T05:40:07","slug":"nio-stock-falls-after-citi-downgrade-warns-that-new-partnership-isnt-a-cure-all","status":"publish","type":"post","link":"https:\/\/www.maxlee.info\/blog\/invest\/nio-stock-falls-after-citi-downgrade-warns-that-new-partnership-isnt-a-cure-all\/","title":{"rendered":"Nio stock falls after Citi downgrade warns that new partnership isn\u2019t a cure-all"},"content":{"rendered":"

Arrangement with Hefei government gives a cash boost but \u2018may put the company under more pressure in case of prolonged sales weakness\u2019<\/p>\n

<\/p>\n

\"Citi
Citi expects that a new-energy vehicle subsidy could come this year, providing a bit of relief to Nio, though he still models weakness for several car models.<\/figcaption><\/figure>\n

Published: March 2, 2020 at 12:07 p.m. ET, By Emily Bary<\/p>\n

Shares of Chinese electric-car maker Nio Inc. are falling in Monday trading after a Citi analyst expressed concerns about the company\u2019s \u201cunderwhelming\u201d performance as of late, as well as a new arrangement with the government of Hefei.<\/p>\n

Nio NIO announced last week that it had struck a preliminary agreement with the government of Hefei<\/a> in China, under which the government will provide funding and resources for Nio and Nio will grow its operations and expand its relationship with partners in the province.<\/p>\n

Nio\u2019s shares are off 2.5% in Monday\u2019s session.<\/p>\n

\u201cWhile the deal will ease [near-term] cash flow pressure on Nio, the collaboration will require Nio to spend a portion of the cash injection on the headquarters move, which may put the company under more pressure in case of prolonged sales weakness,\u201d Citi analyst Jeff Chung wrote while downgrading Nio\u2019s U.S.-listed shares to neutral from buy. He also lowered his price target to $4.30 from $6.80.<\/p>\n

Don\u2019t miss: Tesla\u2019s stock rally set to snap 5-day tumble, but Morgan Stanley still sees a \u2018notably weak\u2019 Q1<\/a><\/p>\n

Chung also worries that ongoing economic pressures \u201cwill likely dampen purchases,\u201d especially since Nio has been establishing itself as an \u201cemerging luxury brand.\u201d<\/p>\n

He expects continued weakness<\/a> for Nio\u2019s ES6 and ES8 lines, though he is \u201ccautiously optimistic\u201d about a new-energy-vehicle stimulus this year. He also thinks that the company\u2019s EC6 electric coupe SUV will contribute to sales beginning in the second half of this year, helping to offset some of the weakness of the other two models.<\/p>\n

Nio shares have gained 5.2% over the past month, as the company\u2019s U.S. counterpart Tesla Inc. TSLA has seen its stock climb 9.2%. The S&P 500 SPX has shed 6.7% in that span.<\/p>\n

\"NIO<\/p>\n

Source: www.marketwatch.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Arrangement with Hefei government gives a cash boost but \u2018may put the company under more pressure in case of prolonged sales weakness\u2019<\/p>\n","protected":false},"author":1,"featured_media":2616,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[19],"class_list":["post-2615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-invest","tag-nio"],"_links":{"self":[{"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/posts\/2615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/comments?post=2615"}],"version-history":[{"count":0,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/posts\/2615\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/media\/2616"}],"wp:attachment":[{"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/media?parent=2615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/categories?post=2615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/tags?post=2615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}