Nio shares dip amid rising selling pressure

Traders Union
All News
Financial News
Nio slips 2.08% today to $5.66

Highlights

Nio achieved its first net profit due to improved margins from in-house chip production and vertical integration.
The company targets 83,000 vehicle deliveries in Q1 and is expanding in Asia with the Firefly city EV launch in Thailand.
Nio trades within a bullish daily structure but faces short-term weakness; price range projected at $5.50–$5.90 with equal breakout risk.

Net profit debut and new launches offset by lingering market pressure

Nio reported its first net profit after years of operating at a loss, supported by cost reductions due to in-house chip production and vertical integration which improved margins. The company has set a target of 83,000 vehicle deliveries in the first quarter, and its upcoming large electric SUV, the Nio ES9, was spotted in China ahead of the official launch scheduled for April 9. Nio also entered the Thai electric vehicle market by launching the right-hand drive Nio Firefly, a compact EV city car, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees the current technical posture of Nio as fragile despite bullish support from moving averages. He notes the limited strength signaled by ADX and the overall intraday weakness, with daily momentum diverging from trend. The first net profit and chip production are positives, but he views ongoing selling pressure and muted response to new product launches as warning signs. He warns that a breakdown below $5.50 could intensify downside risks if sentiment sours further. "Traders should remain cautious — Nio's upside is constrained by market skepticism and weak trend confirmation."

Viktoras Karapetjanc, expert at Traders Union, highlights Nio's shift to profitability as a key turning point for the company. He notes strong delivery targets, new vehicle launches, and strategic market expansion signal a bullish structure and reinforce growth prospects. Vertical integration and cost reduction efforts are expected to drive further margin improvement. Karapetjanc remains confident in the opportunity for buyers in the $5.50–$5.90 range, especially if momentum returns. "With the positive shift in fundamentals and clear macro drivers, further upside is likely if Nio maintains its growth pace."

Sholanke Dele, market strategist, notes sentiment around Nio remains cautious despite a turnaround in profitability. He points to selling pressure overshadowing the launch of new models and market entries, reflecting broader market wariness. Macro uncertainties and a lack of strong intraday conviction limit immediate upside. "Investors need to be wary — market confidence is not yet robust enough to support sustainable rallies in Nio."

Momentum divergence as bullish signals face muted trend strength

MACD signals a bullish setup, but the ADX shows limited trend strength. RSI and CCI remain in neutral to mildly bullish ranges, and Stochastic RSI reads neutral. Bull/Bear Power at 0.31 indicates buyers are driving intraday momentum. The session opened nearly flat with the stock slipping toward its daily low, and a mild divergence is present between intraday movement and overall daily trend.

Previously it was reported that Nio's outlook was supported by improving fundamentals and sustained positive momentum amid expanding international operations. The latest developments, including Nio's entry into new markets and advancements in product rollout, suggest the sideways trading trend may resolve with heightened volatility as investors watch for a decisive move out of the current $5.50–$5.90 range.

Source of Data: NIO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.