Dark pool activity was detected in NIO stock on July 17, 2020.

Volume chart showing a dark pool order in NIO stock on July 17, 2020.

Make sure you review this lesson on dark pools so that you understand the chart above.

On July 17, 2020, Goldman Sachs analyst Fei Fang downgraded NIO Inc. to Sell from Neutral with an unchanged price target of $7. Following an 89% rally in the past month, that came alongside no substantial changes to volume or profit expectations, Fang believes the current share price reflects “over-optimism,” the analyst tells investors. Fang continues to believe Nio’s long-term investment case will be based on China’s structural auto premiumization and EV adoption, as well as the “scarcity of being China’s first home-grown high-end passenger vehicle brand.”

On July 16, 2020, Deutsche Bank analyst Emmanuel Rosner initiated coverage of Nikola (NKLA) with a Hold rating and $54 price target. Investors have “a rare pure way to invest in zero-emission commercial trucks” with Nikola shares, although the stock’s valuation now reflects much of the mid-term opportunity, without necessarily discounting the risks, Rosner said. He estimates Nikola could sell over 15,000 trucks in 2025 and generate revenue of $4.6B with EBITDA of $546M, the analyst noted. While Nikola trades at an EV/sales multiple “about-in line” with Tesla (TSLA) and NIO Inc. (NIO), the company hasn’t produced any truck so far and its factory isn’t built yet, giving it “large execution risk,” the analyst added.

On July 2, 2020, NIO said in a press release, “NIO delivered 3,740 vehicles in June, representing a strong 179.1% growth year-over-year. The deliveries consisted of 2,476 ES6s, the Company’s 5-seater high-performance premium smart electric SUV, and 1,264 ES8s, the Company’s 7-seater high-performance premium smart electric SUV, and its 6-seater variant. NIO delivered 10,331 vehicles in the second quarter, representing an increase of 190.8% year-over-year and an increase of 169.2% quarter-over-quarter. As of June 30, cumulative deliveries of the ES8 and the ES6 reached 46,082 vehicles, of which 14,169 were delivered in 2020.”

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