The Tesla of China plummets 18% after Goldman downgrades to sell and expects 46% downside on high valuation (NIO)

Nio Inc. plunged as much as 18% on Friday after Goldman Sachs downgraded the Chinese electric vehicle maker to “sell” due to its high valuation.
Shares of Nio have surged 221% year-to-date as of Thursday’s close as investors’ euphoria around electric vehicle companies soars, in part driven by Tesla’s meteoric rise.
In a note published on Friday, Goldman downgraded Nio from “neutral” and reiterated its $7 price target, representing 46% downside potential from Thursday’s closing price.
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Nio Inc., often dubbed the “Tesla of China,” fell out of favor with investors on Friday after Goldman Sachs downgraded the electric vehicle manufacturer to “sell” from “neutral.”

Shares plummeted as much as 18% to $10.68 and could keep falling if Goldman’s analysis proves right. Goldman set a $7.00 price target for Nio, implying downside potential of 46% from Thursday’s close. Goldman previously downgraded Nio from “buy” to “neutral” in late June.See the rest of the story at Business Insider

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