Active Stocks: Chinese Electric car maker Nio Inc. [NYSE: NIO] has announced that it will be cutting its workforce by 1200 by the end of next month. It is doing this as a step towards cutting costs and streamlining efficiency. After the job cuts, the company will be left with 7500 employees. In spite of these job cuts, the company has announced core operations such as R&D and customer services would be unaffected.
The company is also focused on building a production plant in Beijing, and is working on a joint venture towards this end. According to the company CEO, Mr. William Li, the company will form a joint venture with Beijing E-Town International Investment and Development Co. Ltd, and pump in $1.4 billion into the plant.
From the charts, this news haven’t impacted much on the share price. In Thursday’s session, the stock dropped slightly by 0.98% to close the day at $3.02. Nonetheless, it is a continuation of the bearish trend that has characterized this stock for the past few months. It has been a challenging time for this company in the past few months, as its electric car deliveries have faltered. One of its company’s key executives also retired.
In the day, other factors likely to play a role in its price action include the upcoming Fed meeting today. The Fed chairman will today morning be speaking at the Fed’s annual Jackson Hole economic policy symposium. Investors are be waiting for his remark and direction that interest rates are likely to take heading into 2020. If they are favorable remarks, the market could gain, and positively impact on individual stocks, such as NIO Inc (NIO).
At the moment, the company has a market cap of $3.173 billion. In the last trading session, it was trading in the $3.01 and $3.09 range. Volumes were quite high too, hitting 12.43 million in the day. If it opens the day below yesterday’s low of $3.01, it would be a continuation of the bearish trend.