5 Big Investors Betting Against NIO Stock

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Shares of Nio (NYSE:NIO) are trading lower following news earlier this week that Chinese President Xi Jinping has secured a third term. During his third term, Jinping is expected to continue his strict reign of economic controls and coronavirus lockdowns, sending Chinese stocks lower across the board.

Diana Choyleva of Enodo Economics added:

“Investors are now repositioning for a China where Xi Jinping rules supreme in an echo chamber of sycophants. For him, ideology and national security trump all other considerations, including growth.”

Meanwhile, electric vehicle (EV) competitor Tesla (NASDAQ:TSLA) announced earlier this week that it would cut prices for its Model 3 and Y vehicles by up to 9% in China. The Model 3 will now have a starting price of $36,615, while the Model Y will have a starting price of $39,780. Following the news, investors became worried the price cuts were due to a lack of Chinese demand.

During September, Nio delivered a total of 10,878 vehicles, while deliveries for the new ET5 model began late that month. That brought third-quarter deliveries to a total of 31,607 vehicles, up 29.3% year-over-year (YOY) and also a record quarterly high. Since inception, the automaker has now delivered a total of 249,504 vehicles.

Nio reported excellent Q3 delivery growth, although the EV company still has its fair share of skeptics. Let’s get into the details.

5 Big Investors Short Selling NIO Stock

The institutional put/call ratio tallied in at 1.29 among all 13F filers as of the end of Q2, compared to 1.41 last quarter. That’s equivalent to 41.15 million calls and 53.64 million calls, implying a bearish options stance.

Meanwhile, CEO William Li remains the largest shareholder of NIO stock through his investment vehicle, Originalwish. As of Q1, he owns a total of 177.47 million shares. Tencent (OTCMKTS:TCEHY) is the second-largest shareholder and owns 164.25 million shares. With that in mind, let’s take a look at the largest put holders of the company:

  1. Susquehanna International Group owns put options against 12.53 million shares of Nio. The firm also owns 12.12 million call options.
  2. Citadel Advisors owns put options against 7.71 million shares of Nio and call options against 9.42 million shares.
  3. Group One Trading owns put options against 5.3 million shares of Nio and call options against 2.68 million shares.
  4. Jane Street Group owns put options against 3.9 million shares of Nio and call options against 4.34 million shares.
  5. Wolverine Asset Management owns put options against 3.4 million shares of Nio and call options against 4,100 shares.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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