Nio shares dive after recession on Goldman Sachs valuation concerns

Shares of nio inc nio,
Citing valuation concerns, Goldman Sachs analyst Fei Feing took a 6.8% dive into prepaid trading on Friday after a slowdown on the China-based electric vehicle manufacturer. After remaining neutral since early October, they cut their ratings to sell. Her stock price target is $ 7, down 46% from Thursday’s closing price of $ 12.94. With the stock soaring 89% in the past month, Fang wrote in a note to customers that he believed “the current share price reflects more optimism than no significant change in volume / profit expectations.” Over the long term, Feng said he believes China’s structural auto premiumization and NIO’s investment case for EV adoption depends on the lack of being China’s first domestic high-end passenger vehicle brand. The stock is up more than 22% (year 222%) since Thursday, while US-based rival Tesla Inc.
+ 0.14%
Almost three times (up to 259%) and the S&P 500 SPX,
+ 0.06%
0.5% has slipped.