The next generation of electric vehicles (EV) has arrived and this time, Tesla wasn’t the one leading the way…
This time, it was Nio, working together with Nvidia and Qualcomm. Nio flipped the EV market on its head when the company released its newest self-driving electric car… A car that could rival Tesla’s Model 3…
With EV stocks continuing their journey to the top of the market, investors are asking themselves if Nio is a buy now, or if they’re looking at the new Nikola Corp. (Nasdaq: NKLA).
Over the weekend, Nio partnered up with Nvidia Corp. (Nasdaq: NVDA) and Qualcomm Inc. (Nasdaq: QCOM) to develop a new generation of electric vehicles, including Its first luxury sedan with self-driving features and a battery life to challenge Tesla (Nasdaq: TSLA), the king of EV makers.
The video Nio released showed a car driving itself to Silicon Valley. That’s right, traders, you read that correctly. There was no physical driver turning the steering wheel or pushing down on the pedal.
As a result, Nio Inc. (NYSE: NIO) gapped up 10% (from $58 to $65) within minutes of trading Monday morning.
So is Nio a buy now and will its share price hit $100 by the end of 2021?
We like to think so. I
Or… we did, until something occurred to us: If we’re thinking this, so are hundreds of other traders… so we’re probably going to witness a pullback soon. Maybe $40 or $50 a share depending on the overall market.
And the reason why we think this has to do with Tesla. Is NIO a buy?
Just last week, we saw Tesla’s stock price soar as Elon Musk became the richest man in the world — even surpassing Amazon’s Jeff Bezos.
Every trader and their mother assumed Tesla would hit $1,000 by the January 2021 monthly expiration date, which is at the end of this week.
But you know what they say about assuming. And what do you think happened Monday morning? TSLA pulled back more than $50 to $808.
Since the stock market likes to rhyme with history, we have a solid idea for how things will play out with Nio over the rest of the year.
Make sure to watch the video below to answer the question “Is Nio a buy?” and see where the stock could be by the end of 2021.