What a week it’s been for Chinese electric vehicle (EV) company Nio(NYSE:NIO). Indeed, NIO stock opened the week around $30 per share, promptly sold off to around $27.50 yesterday, and has since risen to $32.42 per share today.
These rather volatile moves on an otherwise slow and steady week on Wall Street suggest this is stock investors are really watching right now. Here are two factors investors may want to keep their eye on heading into the New Year.
What to Watch for With NIO Stock
This high-profile electric vehicle company has been in the news for a number of reasons this year. However, two key catalysts are among the factors supporting NIO stock in bull markets.
First of all, it’s a China-based company, so that in and of itself provides a unique geopolitical risk for investors. Investors may be concerned about the regulatory backdrop for the EV sector, which appears to be less than friendly. Right now, most investors seem to think this geopolitical risk is lower with a company like Nio, given its stature as the “golden child” of the EV sector in China. Accordingly, whether this is positive or negative is up for interpretation.
Secondly, Nio has become more aggressive in many key areas. The company’s international expansion plans have certainly picked up steam. Nio has also launched next-generation vehicles that could compete with top dogs such as Tesla(NASDAQ:TSLA). These strategic moves have certainly invited bulls to jump back on the NIO stock train heading into 2022.