Tesla gained as much as 9% in early trading on Monday as Giga Shanghai reopens following a closure related to the coronavirus, but unfortunately that gain didn’t sustain long enough.
Monday’ rally above $810 was caused after late Friday report that the automaker’s Shanghai factory would reopen on Monday following a closure due to the coronavirus epidemic. The company will also receive assistance from the Chinese government to resume production, according to the report.
This rally didn’t stay long enough above the $800 level after NIO Inc!, a once touted Tesla Killer released deliveries numbers that missed analysts expectations.
Tesla Share down over $50 and is presenting trading a little above $750 at the moment.
The NIO Effect
Shares of Nio Inc. fell 1.1% on heavy volume in morning trading Monday, paring earlier losses, after the Shanghai-based electric car maker reported a year-over-year decline in January sales, citing the effects of the “unfortunate” outbreak of the coronavirus and the unfavorable timing of the Chinese New Year holiday.
The company also said it expects February sales to decline, given that the Chinese government postponed the return to work from the New Year holiday for most businesses. The stock had been down as much as 5.0% earlier. Trading volume topped 19.1 million shares, making the stock the most actively traded on major U.S. exchanges. Nio said it delivered 1,598 vehicles in January, down 11.5% from a year ago. “We achieved satisfactory results in January despite the outbreak of novel coronavirus,” said Founder and Chief Executive William Bin Li. The stock has run up 90.4% over the past three months, while U.S. rival Tesla Inc. shares have more than doubled (up 135.7%) and the S&P 500 SPX has gained 7.6%. – Business Insider
Tesla has gained about 80% year-to-date.