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Home / Business / With the soaring of NIO, the short-selling Citron saw its stock halved

With the soaring of NIO, the short-selling Citron saw its stock halved



Share of Wei Lai (New York Stock Exchange: NIO) Under the attention of colleagues, it soared by more than 10% this morning Xpeng with Lee Motors The reported earnings were better than expected. This makes NIO’s share price more than $50 per share, because the “new energy” automaker group is expected to achieve higher long-term sales.

However, when NIO was preparing to release its third-quarter earnings report later this month, Andrew Left of Citron Research, who sold short, said that he was “pulling” electric vehicle (EV) production. And saw the stock price fall to $25. So far, NIO’s stock has risen 1

,100%.

NIO ES6 goes offline

NIO ES6 is offline. Image source: NIO.

Citron was an early advocate of the electric car manufacturer and recommended the product to investors two years ago when the stock price was $7. But the latest news released by the analyst today stated that NIO’s status “can never be proven by its position in the Chinese electric vehicle market or its near-term prospects.”

Leftists argue that NIO is vulnerable Teslaof (Nasdaq: TSLA) Y-shaped pricing in China. Analysts believe that the price of Model Y between US$56,000 and US$73,000 will cause problems for NIO’s ES6 hatchback, while analysts now believe that Tesla’s price may be as low as US$41,000, relative to its competitors. NIO’s valuation has suffered a greater impact.

The new round of price cuts for electric vehicles may also seriously undermine NIO’s profit opportunities, thereby greatly changing its stock price trend.

Tesla CEO Elon Musk praised the expansion of its Shanghai plant’s production capacity, which will help the plant achieve 500,000 vehicle production this year, noting that the progress made by his Chinese team “exceeds All reasonable expectations are met”.

Whether NIO will be as low as Citron expected is a guess, but when Tesla speeds up production and puts more pressure on the Chinese EV manufacturer, the leftist’s call to “exit NIO” may be a wise choice.




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