Shares of Nio Inc. (NIO) slipped 1.0% in premarket trading Tuesday, pulling back slightly after back-to-back record closes, after Citigroup analyst Jeff Chung backed away from his bullish stance on the China-based electric vehicle maker, citing concerns over competition from Tesla Inc. (TSLA). Also pressuring the stock, Nio said late Monday it was offering $1.3 billion in convertible debt, which can be converted after Aug. 1, 2025 to shares or cash. Nio's stock closed at records the past two sessions ( ), as investors cheered the unveiling over the weekend of the company's ET7 luxury sedan. "ET7 is good but not enough to make any critical changes from Tesla's challenge," Chung wrote in a note to clients. He estimates that ET7 will only register "limited incremental sales" of 3,000 to 4,000 units per month from the first quarter of 2022, and is likely to be challenged potentially by a Tesla Model-S "facelift" in the future. Tesla's stock rose 2.9% ahead of Tuesday's open, after the stock dropped 7.8% on Monday to snap a record 11-day win streak ( ). Over the past three months, Nio's stock has rocketed 187.0% and Tesla shares have soared 83.4%, while the S&P 500 has gained 7.5%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 12, 2021 07:55 ET (12:55 GMT)
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