NIO Stock Breakdown | Tesla of China

Not everyone can replicate the success of Tesla Inc (NASDAQ:TSLA), but NIO Inc (NYSE:NIO) just might pull it off in the Chinese market. This Chinese electric car company debuted on the New York Stock Exchange (NYSE) two months ago and NIO stock has experienced quite a bit of volatility since its initial public offering (IPO). A report from Citron Research on November 19 only added fuel to the fire. For investors searching for an NIO stock forecast, here’s what you need to know. Founded in 2014, NIO Inc made its name by developing the “EP9” supercar. The two-seater ran the Nürburgring Nordschleife in just 6 minutes 45.9 seconds, setting a record for electric vehicles (EVs) on that track. The company then entered the premium electric vehicle market in China with the “ES8,” an all-electric, full-size SUV that can seat seven passengers. NIO plans to launch the “ES6,” its five-seater SUV, by the end of this year. The latest catalyst came on Monday, November 19, when Citron Research released a report saying that NIO stock will see little resistance on its way to $12.00 per share. (Source: “NIO short is a Tesla Déjà vu – Path to $12 Should Have Little Resistance,” Citron Research, November 19, 2018.) Given that NIO stock closed at $7.19 on Friday, Citron’s $12.00 price target was quite bold. And indeed, Citron’s bullish stance sparked a rally, as NIO stock shot up by as much as 12% on Monday morning. Shares of NIO Inc closed at $7.84 apiece on Monday, marking a gain of nine percent. One of the reasons why this release became a trigger event was that Citron Research’s Executive Editor Andrew Left was a well-known activist short seller. In particular, he wasn’t always a fan of the electric vehicle industry. In September, Left filed against Tesla, alleging that the company’s Chief Executive Officer Elon Musk “attempted to manipulate the price of Tesla securities with false and misleading tweets, in a directed effort to harm short-sellers.” (Source: “Short seller Andrew Left sues Tesla and Elon Musk, claiming stock manipulation,” CNBC, September 6, 2018.) Left turned bullish on Tesla in October. Now, he thinks NIO stock could be an even bigger opportunity.