• NYSE:NIO falls by 3.22% as the broader markets have a down day overall.
  • Rival electric vehicle companies continue to mirror Tesla’s performance in the markets.
  • Rumors abound as NIO’s battery facility gets a visit from the chairman of SINOPEC.

NYSE:NIO had a historic run in 2020 as the stock was trading at just over $4.00 on February 17th of last year. By the end of the year, NIO was trading at just under $60, which represents a ten-month period of nearly 1400% growth. On Wednesday, shares of NIO continued their lackluster 2021 by dropping 3.22% to close the trading session at $57.32. Shares are up 7% so far during the first six weeks of the year, but much of the electric vehicle sector that was so red-hot during 2020, has stalled so far in 2021. 

One of the main reasons for the industry struggles has been the volatile performance of sector leader Tesla (NASDAQ:TSLA). Tesla has been making headlines of late as a controversial investment of $1.5 billion into Bitcoin has caused fluctuations in the stock’s price levels. Other NIO rivals like Li Auto (NASDAQ:LI), Xpeng (NYSE:XPEV), and even Chinese OTC company and Warren Buffet backed BYD (OTC:BYDDY), have also plateaued as of late, perhaps displaying some investor fatigue in the sector. Finally, recent rumors of a SPAC merger between CCIV and American luxury EV maker Lucid Motors has seen a huge influx of investments as the new shiny toy causes investors to skim some profits from the huge EV run-up last year. 

NIO stock forecast

NIO stock price chart

NIO is preparing for its impending European expansion, just as Tesla announces plans to begin its move into India, and Ford (NYSE:F) and XPeng also look to break into Europe. The rumor mill has been swirling since SINOPEC Chairman Zhang Yuzhuo was seen visiting a NIO battery swap station in the last few days. Could SINOPEC be signing up as a high profile customer to NIO in the near future? It would signal that NIO is slowly claiming the top spot in the lucrative China market, which could lead to continued growth for its stock.