Shares of Nio Inc. NIO,
declined 1.0% in trading on the market on Tuesday, retreating slightly after closing the record, after Citigroup analyst Jeff Chung withdrew from its positive stance on the electric vehicle manufacturer in China, with reference to the competition concerns of TESla Inc., TSLA,
Nio also expressed pressure on the stock and said late Monday that it is offering $ 1.3 billion in convertible debt, which could be converted into shares or cash after August 1, 2025. Nio’s share has closed on record over the past two sessions as investors cheered on the unveiling of the ET7 luxury sedan over the weekend. “ET7 is good, but not enough to make critical changes to Tesla’s challenge,” Chung wrote in a note to customers. He estimates that from the first quarter of 2022, ET7 will only register ‘limited incremental sales’ of 3,000 to 4,000 units per month and is likely to be challenged by a Tesla Model-S’ ‘facelift’ in the future. Tesla’s share rose 2.9% ahead of Tuesday’s opening, after the stock fell 7.8% on Monday to hit an 11-day record. Over the past three months, Nio’s shares have risen by 187.0% and Tesla shares have risen by 83.4%, while the S&P 500 SPX,
achieved 7.5%.
