As the chart shows, the share price of NIO Inc. (NIO), the Chinese manufacturer of “smart” electric vehicles, has fallen by roughly 30% over the past month and this week slipped below $5 for the first time since mid-August.

Among the bearish drivers:
→ the latest quarterly report revealed gross revenue below analysts’ expectations ($3.06bn versus $3.11bn);
→ a cautious outlook for vehicle deliveries in the upcoming quarter.

Market sentiment appears to have turned wary, given that:
→ the Chinese economy continues to show signs of slowing despite government stimulus;
→ NIO’s revenue prospects may remain constrained by intense competition from BYD, XPeng and Li Auto — a particularly concerning factor as NIO launches new models and sub-brands.

Even so, the NIO share chart does offer some glimmers of optimism.

Technical Analysis of NIO Shares

Using the higher highs and higher lows of 2025, it is possible to outline an ascending channel (shown in blue). Within this structure:
→ the price is hovering near the lower boundary of the channel, which may act as support;
→ the RSI indicator is displaying a bullish divergence.

Another encouraging signal lies in the recent price action: yesterday’s session opened with a bullish gap and ended higher, suggesting renewed buying interest emerging near the psychologically important $5 level.

It is therefore plausible that the bulls may attempt to keep NIO shares within the channel and even resume the upward trend. Whether they succeed, however, will depend largely on sales performance — and on forecasts for 2026 — for the company’s new sub-brands, ONVO and Firefly.

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