Nio (NYSE:NIO) stock investors are watching keenly as an important date approaches. Indeed, on June 25, the Chinese electric vehicle (EV) producer will host its annual shareholder meeting.
This event comes as NIO stock faces a highly uncertain future. Shares have been decreasing steadily for months and, while they have recently regained some momentum, Nio is still lagging behind many other Chinese EV stocks. Now, the firm has an opportunity to show investors what it’s doing to help usher in a turnaround. But that doesn’t mean the current growth will continue, unless management can reassure investors that it has big plans for the second half of 2024.
What’s Happening With NIO Stock?
News of the shareholder meeting seems to be boosting NIO stock today. As of this writing, shares are up more than 3%. Other than the upcoming meeting, though, Nio has not announced any company-specific news since trading began.
Despite this morning’s pop, NIO stock also remains below the $5 mark. Indeed, its poor performance of late has caused many institutional investors to lose faith. Data from WhaleWisdom shows that the number of funds holding NIO has decreased by 6.17% since the first quarter of 2024. Percentage of ownership and the number of new positions have also fallen 20.96% and 32.5%, respectively. Finally, the put/call ratio has increased over 50% to 1.44, indicating that bearish sentiment is surging.
With this in mind, it makes sense for experts to be souring on NIO stock. On TipRanks, shares have five buy ratings, six holds and one sell rating. InvestorPlace contributor Thomas Niel provides further context on the company’s problems:
“NIO stock has fallen into penny stock territory, make no mistake. This remains one of the overvalued stocks to sell. The company sports a nearly $9 billion valuation, despite continued heavy losses, as well as continued issues with getting back into high-growth mode.”
The Road Ahead
Many investors remember when Nio seemed like a likely candidate to make inroads in the Chinese EV market. But with shares down more than 45% year-to-date (YTD), it’s hard to be optimistic about this troubled company.
NIO stock just isn’t giving investors a reason to believe it will start making progress in 2024. Meanwhile, the threat of tariffs from multiple nations continues to cast doubt over many Chinese EV stocks. So, Nio’s upcoming shareholder meeting is unlikely to do much for shares — unless management announces something significant.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
