Shares of Nio Inc. NIO,
fell 1.0% in Tuesday’s pre-market, easing slightly after closing consecutive records after Citigroup analyst Jeff Chung gave up his optimistic stance on the Chinese-based electric vehicle manufacturer, citing concerns about competition from Tesla Inc. TSLA
Also pushing the stock, Nio said on Monday that he was offering $ 1.3 billion in convertible debt, which can be converted after August 1, 2025 into shares or cash. Nio’s shares closed at record levels in the past two sessions, while investors applauded the weekend’s launch of the company’s ET7 luxury sedan. “ET7 is good, but not enough to make critical changes to the Tesla challenge,” wrote Chung in a note to customers. He estimates that the ET7 will record only “limited incremental sales” of 3,000 to 4,000 units per month starting in the first quarter of 2022 and is likely to be challenged by a Tesla Model-S facelift in the future. Tesla’s shares rose 2.9% before Tuesday’s opening, after the shares fell 7.8% on Monday, beating a record 11-day winning streak. In the past three months, Nio’s shares have soared 187.0% and Tesla’s shares have soared 83.4%, while the S&P 500 SPX,
gained 7.5%.
