NIO (NYSE:NIO) Trading Down 7.9% – Should You Sell?

20 Mar 2026, 21:40 by Sarita Garza · The Markets Daily

NIO Inc. (NYSE:NIO – Get Free Report)’s stock price dropped 7.9% during trading on Friday . The stock traded as low as $5.40 and last traded at $5.4250. Approximately 52,050,342 shares changed hands during mid-day trading, an increase of 12% from the average daily volume of 46,507,738 shares. The stock had previously closed at $5.89.

Key Headlines Impacting NIO

Here are the key news stories impacting NIO this week:

Positive Sentiment: Company fundamentals: NIO reported sharply higher Q4 deliveries and its first profitable quarter, giving operational momentum that supports longer‑term upside. Jim Cramer on NIO
Positive Sentiment: Semiconductor monetization: NIO is marketing its M97 autonomous‑driving chip to Leapmotor and Geely — a potential new revenue stream that leverages R&D and could improve margins over time. NIO in Discussions With Leapmotor & Geely for Chip Supply
Positive Sentiment: Management outlook: CEO comments flag margin upside and a domestic expansion push by 2027, signaling potential longer‑term profitability improvements. MSN: CEO flags margin upside
Neutral Sentiment: Analyst/target landscape is mixed: several buy and sell ratings with a median 12‑month target near $6.85 — gives both upside and limited near‑term clarity. Quiver Quantitative coverage
Neutral Sentiment: Mixed institutional flows: large hedge‑fund buys and sizable reductions by others suggest both conviction and positioning risk among big holders. Quiver Quantitative holdings
Negative Sentiment: Macro/market driver: Rising yields and a “risk‑off” tape hit speculative EV and ADR stocks, triggering profit‑taking after NIO’s recent post‑earnings run — the dominant driver of today’s decline. Quiver Quantitative: risk-off analysis 247 Wall St: EV selloff
Negative Sentiment: Dilution/compensation optics: NIO disclosed a large equity‑based incentive grant under its 2026 plan, which can revive dilution concerns even as operations improve. Quiver Quantitative: equity grant note
Negative Sentiment: Supply/headline risk: Reports flag memory chip shortages and notes that in‑house chip progress hasn’t fully restored sentiment — potential near‑term supply and execution risks. InsiderMonkey: memory chip shortage MSN: in-house chip note

Wall Street Analyst Weigh In

NIO has been the topic of several research analyst reports. UBS Group downgraded shares of NIO from a “buy” rating to a “hold” rating in a report on Tuesday, November 25th. Barclays lifted their target price on NIO from $3.00 to $4.00 and gave the company an “underweight” rating in a research report on Friday, November 28th. Dbs Bank raised shares of NIO from a “hold” rating to a “moderate buy” rating in a research report on Monday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of NIO in a research report on Monday, December 29th. Finally, Nomura upgraded shares of NIO from a “neutral” rating to a “buy” rating and set a $6.60 target price for the company in a research note on Wednesday, March 11th. Seven analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $6.80.

Get Our Latest Research Report on NIO

NIO Stock Performance

The stock has a 50 day moving average of $4.97 and a 200 day moving average of $5.77. The company has a quick ratio of 0.87, a current ratio of 0.98 and a debt-to-equity ratio of 2.08. The firm has a market cap of $12.46 billion, a price-to-earnings ratio of -5.59 and a beta of 1.11.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Atlantic Union Bankshares Corp lifted its stake in NIO by 98.3% in the 4th quarter. Atlantic Union Bankshares Corp now owns 5,950 shares of the company’s stock valued at $30,000 after purchasing an additional 2,950 shares during the last quarter. Farther Finance Advisors LLC lifted its holdings in NIO by 148.3% during the 3rd quarter. Farther Finance Advisors LLC now owns 4,817 shares of the company’s stock worth $37,000 after buying an additional 2,877 shares during the period. Arax Advisory Partners boosted its holdings in NIO by 81.6% in the fourth quarter. Arax Advisory Partners now owns 7,758 shares of the company’s stock valued at $40,000 after acquiring an additional 3,487 shares during the last quarter. Eurizon Capital SGR S.p.A. acquired a new stake in shares of NIO during the fourth quarter worth $41,000. Finally, MV Capital Management Inc. bought a new stake in NIO during the fourth quarter valued at $42,000. Institutional investors own 48.55% of the company’s stock.

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.