Our mission is to help you obtain financial freedom. Checkout Our Youtube Channel Checkout Our Youtube Channel

NIO’s $7.53 price target after share price plummets 17% due to $1 billion debt news


New Debt, New Woes: Nio Raises $1 Billion, Shares Tumble by 17% Amid Financial Struggles

– Nio announces plans to raise $1 billion in new debt through the issuance of convertible senior notes, leading to a 17% drop in its share price.
– The new debt will consist of $500 million worth of convertible senior notes due in 2029 and another $500 million due in 2030. An overallotment option could increase total new debt to $1.15 billion.
– The move comes after Nio reported financial losses of $2.1 billion and a negative free cash flow of $1.6 billion in the previous year.
– S&P Global Market Intelligence predicts Nio will not achieve profitability until 2027.
– Funds from the new debt issuance will partially be used to pay off existing debt and to strengthen the balance sheet.
– The company’s strategy doesn’t address the core issue of profitability, leading to concerns about future debt offerings and market sell-offs.


– NIO’s $10.18 support level has held as strong support since August 25, but the recent bearish news has broke this support level.
– I have my eyes on $7.53 as a key price level that aligns with the green trend line and lower end of my buy zone. The lower end of the Bollinger Band is currently sitting near this price level as well.
– I think there could be a dip or wicks below the green support level for the best buying opportunity there.

TradingView Chart:

Inline Feedbacks
View all comments

More ClearValue Insights

Default Thumbnail

How Keep Your Money and Combat Inflation

Rising prices due to inflation can put a strain on your budget and savings. When the cost of goods and services increases, your money doesn’t stretch as far. This erosion of purchasing power makes it harder to maintain your standard of living. However, by understanding how inflation works and taking proactive steps, you can mitigate […]

Read More
Default Thumbnail

Beyond Jobs: Why Recent Employment Figures May Not Sway the Fed

These past few days have been quite uncertain, especially regarding what is in store for interest rates in the U.S. But with the latest news revealing that nonfarm payrolls surged by a hefty 303,000 in March, beating expectations and showing a significant jump from the previous month, and with the unemployment rate holding steady at […]

Read More
Default Thumbnail

Against The Tide: The Contrarian View On Fed Rate Cuts

Following the Federal Reserve’s recent decision to keep rates unchanged and the suggestion of future rate cuts later in the year, there’s been a prevailing sense of optimism among many investors, with reassurances that these anticipated rate cuts will materialize eventually. However, Vanguard is offering a different view point as they are suggesting that the […]

Read More