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:

With the Admiral Markets Trade.MT5 account, you can trade Contracts for Differences (CFDs) of Tesla and more than 3000 stocks! CFDs allow traders to try to profit from the bull and bear markets, as well as the use of leverage. Click on the following banner to open an account today:


The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
  4. The Analysis is prepared by an independent analyst, Roberto Rojas (analyst), (hereinafter “Author”) based on their personal estimations.
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
  6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.