Nio (NIO 1.25%) shares have been turbulent over the last month, and that continued Wednesday morning. Shares of the Chinese EV maker jumped 2.8% in early trading today, before dropping nearly 3% below yesterday's closing price. At 11:11 a.m. ET, the shares were still down 2.5%.
Investors have balanced positive and negative crosscurrents that have driven the stock recently. Shares declined last week when fellow Chinese EV maker XPeng provided disappointing guidance for third-quarter vehicle deliveries. Earlier this week, Deutsche Bank analyst Vincent Ha said his firm thinks Nio's third-quarter deliveries will be a little over 30,000 units. That implies sequentially flat shipments from July results. Investors may react again tomorrow, when Nio will report its August delivery numbers.
Negative sentiment has also come from COVID-19-related restrictions that continue in some Chinese cities and power curtailments stemming from a drought reducing hydroelectric output. Both have affected supply chains for manufacturers like Nio. But the government has also announced a new stimulus package this month to boost consumer demand. While Nio shares haven't moved much from where they stood one month ago, they have bounced up and down along the way.
Ha and Deutsche Bank believe that investors already expect the softer sales report. The firm is also looking ahead to a resumption of growth with new models coming out. Nio launched its ES7 mid-large-size SUV in June and plans to begin shipments of the ET5 midsize sedan at the end of September.
Ha still thinks the shares are a buy with the firm's new price target of $39 (down from $45) representing a 100% increase over recent levels, reports online media firm EV. Nio investors should watch for what the company says tomorrow with August deliveries, but more color will also come on Sept. 7, when it is scheduled to report its second-quarter results.