Excluding Tesla (TSLA), EV stocks continue to struggle.
That’s evident as Nio (NIO) and Rivian (RIVN) both trade lower on Wednesday following disappointing earnings reports.
Tesla entered the year amid a horrific downtrend and it only got worse in the first few days of 2023. By the time it hit its low just above $100, Tesla stock had lost two-thirds of its value from the August peak and had fallen fully three-quarters (75%) from its all-time high.
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Amid the stock’s recent rally, Tesla more than doubled off the lows — keep in mind the company will hold its Investor Day meeting today.
Tesla’s robust recovery seemed to help encourage a broader rally on Wall Street, as many tech stocks enjoyed a strong run. But most EV stocks weren’t able to cash in.
Stocks like Rivian, Nio and many others continued to struggle — and that struggle continues today after earnings.
Trading Nio Stock on the Earnings Report
Chart courtesy of TrendSpider.com
Notice late last week how Nio stock broke below the key $9.50 level. That’s not the 52-week low, but it was a clear support level that Nio hammered out in late December and early January.
Since Nio stock broke below that mark, it has failed to regain it. It even tried to do so today and was rejected.
That has to have traders looking for a potentially deeper dip. On the downside, the next level of interest is at $8.38, which is the 52-week low.
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If the stock continues lower, then the $7.99 gap-fill could be in play.
On the upside, Nio needs to regain $9.50 and the declining 10-day moving average. Above that puts $10-plus in play.
Trading Rivian Stock on the Earnings Report
Chart courtesy of TrendSpider.com
As for Rivian, the chart looks even worse. Broadly, there’s been support between $15.50 on the downside and resistance near $21.50.
Very soon, we'll find out about whether support will continue to hold. That’s as Rivian stock tumbles almost 20% on the day and as the company’s problems just won’t go away.
Keep a close eye on the low at $15.28. A break and close below that puts sub-$15 in play and quite honestly makes it a no-touch for traders.
If the selling pressure in the overall market gains momentum, the $11 to $12 range could eventually be in the cards for Rivian stock.
On the upside, the bulls would like to see the stock regain last month’s low, at $16.91.
