Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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    1,000% Nio share price rise

    One of the stock highlights of the year to date has been the Nio share price rise, something which can be appreciated by looking at the daily chart. The rise for the Chinese electric car maker of 1,000%, has not only been exceptional in terms of its magnitude, but the way it has been sustained. While rival EV maker Tesla (TSLA) has seen massive volatility, for Nio, so far, it has been a relatively smooth ride.

    Learn more about shares trading with us

     

    Nio shares COVID-19 driver

    Of course, the 10 fold rise has been driven by what are now familiar fundamental drivers. The key one is the way that in the wake of the COVID-19 pandemic investors have become far more environmentally conscious, especially given that coronavirus is essentially a respiratory disease.

    This concern has placed renewable energy front and centre as a space of interest, with EV’s leading the way on a day to day basis. The second key backing factor for the Nio share price is clearly the origin of the company in the massive Chinese market.

    China has seen an economic resurgence since the pandemic, and the ongoing rise of the middle class market in China. A company addressing the high end car market is likely to be seen as a winner. So far this has proved to be the case.

     

    The great NIO Inc share price turnaround

    With a market capitalisation greater than that of many of the fossil fuel players such as GM (GM), the rise and rise of Nio shares has been nothing less than phenomenal. But at the same time it has been perfectly understandable, not the usual situation for very popular rising shares.

     

    NIO share price $1bn boost

    Nio, which has been described as Tesla’s nemesis, does appear to justify such a tag. This is not only because of its position in the largest market in the world - China, but also the way that its product line includes a SUV and will be expanding rapidly over the next year.

    Perhaps most crucially, in terms of the race of Nio shares with Tesla, the Chinese group has secured its financial position. This is quite a turnaround from the position Nio was in just a year ago, running out of cash, and with poor sales.

    A year on and boosted by $1bn in local Chinese funding, Nio can progress with battery innovation, and after sales services which threaten to place it well ahead of Tesla in the market place.

     

    How to trade NIO shares

    Open a live or demo account with ATFX to get started today. Trade shares on leverage, take up a long or short position when trading with CFDs and make potential gains from price movements.

    1. Register for an account or log in to your existing account

    2. Open MT4 either on your desktop or mobile

    3. Search for NIO shares in the market watch or symbols window

    4. Choose your position size

    5. Hit buy or sell, and then confirm the trade

     

    Nio share price and the competition

    What is clear over the past year, and especially since the pandemic began, is the way that investors are trying to bet on who will be the winner in the EV space? The key issue in this battle is who will be able to beat the opposition. In the end it may come down to the rollout of EV infrastructure such as charging points, as to the cars themselves. In this respect it could be that it is not so much Nio’s cars that will win the race, but customer service, Government subsidies, as well as leasing and financing deals. Set against this background the trend for Nio seems well entrenched for now.

     

    Daily chart analysis showing NIO share price daily movements for 2020

     

    To see all upcoming news and data releases that’ll have an effect on the financial markets, check out our Economic Calendar. It’ll cover all major releases from global economies and give you the exact time the release is due, the previous data, forecast data and actual data (once released).

    Last Updated: 13/11/2020

    This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


     

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