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Beware! Why The Recent Nio Stock Rally Could Be Fleeting

As with stocks across the board in the electric vehicle sector, investors have been warming back up to Nio (NYSE:NIO) since the start of the new year. So far in January, NIO stock has rallied by more than 26%.

Although factors like Tesla’s (NASDAQ:TSLA) vehicle price cuts weighed on shares in the China-based EV maker earlier in the month, several developments, including a recently-announced battery partnership deal (more below) have perked up investor enthusiasm for the stock.

Nevertheless, I wouldn’t view this as a sign that a recovery is in motion for this hard-hit vehicle electrification play. The issues that hammered NIO shares throughout 2022 remain in play.

NIO Stock and Its Recent Rally

This post appeared first on InvestorPlace.