NIO (NYSE:NIO) Stock Price Down 7.5% – Time to Sell?

31 Dec 2025, 17:38 by Jessica Moore · The Cerbat Gem

NIO Inc. (NYSE:NIO – Get Free Report) shares traded down 7.5% on Wednesday . The stock traded as low as $4.95 and last traded at $5.09. 82,680,549 shares were traded during mid-day trading, an increase of 42% from the average session volume of 58,070,738 shares. The stock had previously closed at $5.50.

NIO News Roundup

Here are the key news stories impacting NIO this week:

Positive Sentiment: Management’s upbeat Q4 sales outlook and CEO forecast for more than $4 billion in Q4 vehicle sales lifted investor confidence, driving rally activity. Read More. Read More.
Positive Sentiment: China confirmed extension of EV trade-in/subsidy programs into 2026 — a policy tailwind that improves demand visibility and supports valuation expectations. Read More.
Positive Sentiment: Delivery momentum: NIO reported rapid ES8 uptake (40,000 deliveries in ~100 days) and growing Europe shipments, indicating stronger revenue conversion from recent launches. Read More.
Positive Sentiment: Market/flow signals are bullish: above-normal call option volume and heightened retail interest have coincided with the operational news, amplifying upward pressure on the share price. Read More.
Positive Sentiment: Reports that NIO may deepen reliance on CATL for battery supply were received positively by markets as a potential reliability/cost advantage for production scaling. Read More.
Neutral Sentiment: NIO Capital invested $20M in used-car platform Uxin — a strategic move that could support distribution/aftermarket channels but has unclear near-term P&L impact. Read More.
Negative Sentiment: The company delayed a major software update to early January, which could modestly affect customer experience timelines and short-term sentiment. Read More.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. Barclays lifted their price target on shares of NIO from $3.00 to $4.00 and gave the stock an “underweight” rating in a research note on Friday, November 28th. Weiss Ratings reissued a “sell (d-)” rating on shares of NIO in a research note on Monday. Macquarie set a $5.30 target price on NIO in a research note on Tuesday, November 25th. Wall Street Zen upgraded NIO from a “strong sell” rating to a “hold” rating in a report on Monday, September 8th. Finally, Mizuho raised their price target on NIO from $6.00 to $7.00 and gave the stock a “neutral” rating in a research note on Tuesday, September 23rd. Three analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $6.73.

View Our Latest Report on NIO

NIO Trading Down 7.5%

The firm has a market capitalization of $10.62 billion, a P/E ratio of -3.51 and a beta of 1.04. The stock has a 50-day simple moving average of $5.83 and a two-hundred day simple moving average of $5.58. The company has a current ratio of 0.94, a quick ratio of 0.83 and a debt-to-equity ratio of 2.36.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Northwestern Mutual Wealth Management Co. increased its position in NIO by 49.2% during the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 18,441 shares of the company’s stock valued at $70,000 after purchasing an additional 6,078 shares during the period. Rafferty Asset Management LLC boosted its stake in shares of NIO by 38.9% during the first quarter. Rafferty Asset Management LLC now owns 50,109 shares of the company’s stock valued at $191,000 after purchasing an additional 14,028 shares in the last quarter. Advisors Asset Management Inc. increased its holdings in NIO by 39.1% during the first quarter. Advisors Asset Management Inc. now owns 123,467 shares of the company’s stock valued at $470,000 after buying an additional 34,678 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in NIO by 3,966.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 5,316,291 shares of the company’s stock worth $20,255,000 after buying an additional 5,185,565 shares in the last quarter. Finally, Kingstone Capital Partners Texas LLC bought a new position in NIO in the second quarter worth approximately $12,315,000. 48.55% of the stock is currently owned by institutional investors.

About NIO

(Get Free Report)

NIO Inc is a pioneer in the premium electric vehicle (EV) segment, dedicated to the design, development and manufacture of smart, high-performance EVs. Established in November 2014 and headquartered in Shanghai, China, the company focuses on integrating cutting-edge electric propulsion, advanced connectivity and autonomous driving technologies into its automotive platforms. NIO’s vision centers on creating a holistic user experience that extends beyond the vehicle itself, encompassing energy services and digital solutions.