- NYSE:NIO surged by 4.83% on Friday to outpace the broader markets.
- The SEC is cracking down on Chinese ADRs that trade on U.S. markets.
- Nio announces its second quarter earnings call has been scheduled.
NYSE:NIO managed to climb back and recover some of its losses, but the Chinese electric vehicle maker still fell over 12% during the month of July. On Friday, shares of Nio soared 4.83% higher and closed the trading week at $44.68. With the gain, Nio has clawed its way back over its key 50-day moving average which is a bullish sign that the stock is on the uptrend. Still, with increasing geopolitical tensions between the U.S. and China, chances are that this situation is far from over.
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Speaking of the political tension, the SEC announced on Friday that it will be cracking down on Chinese ADRs that trade on the U.S. markets. The agency imposed stricter disclosure requirements, which will no doubt be accompanied by more in depth auditing procedures as well. The move is just the latest in the ongoing back and forth between the two superpowers. The recent crackdowns by China on its own tech companies that trade on U.S. markets caused a massive sell off, erasing billions of dollars from their market caps.
NIO price prediction
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In the midst of the busiest weeks of second quarter earnings calls, Nio has also announced it will hold its call on August 11th. After Tesla’s record-setting quarter the pressure will be on Nio and the other Chinese EV makers, particularly as their stocks are mired in fragility following the ongoing tensions. In particular, Nio investors will be looking for the company to update its move towards profitability, as well as the upcoming release of its new vehicle models.