Both NIO and Xpeng join Tesla with losses and lowered deliveries

March 09, 2021 14:30

The Nasdaq index has been undergoing a strong correction due to the increase in US bond yields stemming from fears of a possible increase in inflation. This drags the technology sector down, with one of the main victims being Tesla. But is this the only cause of the sector’s sharp falls?

Although it is true that inflation fears have been an important catalyst for these declines, the earnings results coming out of this sector have not been satisfactory. On January 27, Tesla presented its results, where we saw its earnings per share come in below the market consensus.

After these results, Tesla has suffered a sharp decline in the markets after reaching its all-time highs at the end of last January, losing more than $300 per share, until it lost the 61.8% fibonacci level in search of its moving average of 200 sessions.

Source: Tesla daily chart from Admiral Markets MetaTrader 5 platform from November 14, 2019, to March 9, 2021. Taken on March 9 at 12:50 CET. Note: Past performance is not a reliable indicator of future results, or future performance.

 Price evolution of the last 5 years:

  • 2020: 743.40%
  • 2019: 25.71%
  • 2018: 6.89%
  • 2017: 45.69%
  • 2016: -10.96%

Despite the good prospects at the beginning of the year, NIO recently announced results which, like Tesla, showed mixed results with earnings per share lower than expected by the market consensus, which has led it to suffer in sharp declines over the past few weeks. In addition, it also announced a slight reduction in the forecast of vehicle deliveries for the first quarter of the year, which increased the falls in the short term, and not only led it to lose three levels of support, but has also led to it seeing its 200 session average.

Source: Daily chart of the NIO of the Admiral Markets MetaTrader 5 platform from December 6, 2019, to March 9, 2021. Realized: March 9 at 1:00 p.m. CET. Note: Past performance is not a reliable indicator of future results, or future performance.

Price evolution of the last 5 years: 

  •     2020: 1112.24%
  •     2019: -36.89%
  •     2018: -8.74%

For its part, Xpeng has also announced a reduction in its forecast for deliveries of vehicles for this first quarter, with it being below forecasts of its main competitor with a total of 12,500 electric vehicles delivered until the end of March.

In recent days, like Tesla and NIO, Xpeng has suffered sharp declines that have led it to lose the level of $30 per share to $26.86, continuing the downward trend that began at the end of January, after marking annual highs in a zone close to 60 dollars per share.

Despite these sharp declines, the electric vehicle sector remains for many investors a very attractive future prospect, so perhaps they can interpret this as a time to look for signs of entry.

For an in-depth analysis of the global electric vehicle market revealing the Top 3 vehicle stocks to have on your Trading watchlist, have a look at this video:

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