Two days and a 12% drop! Why is NIO performing so poorly?
Meituan CEO Wang Xing has been continuously reducing his holdings in Xpeng Motors, causing concerns in the market about potential future selling pressure. Moreover, Xpeng Motors will directly compete with Huawei, which may put short-term pressure on sales and gross profit margins!
After Ideal Motors' stock plummeted 10% in the US market last night, Hong Kong stocks continued to suffer a dismal decline today!
On Tuesday, September 26th, Ideal Motors' Hong Kong stocks opened low and continued to decline, falling 6% at one point and ultimately closing down 4.7% at HKD 137.9. As a result, Ideal Motors' Hong Kong stocks have fallen more than 12% since the beginning of this week.
What happened? Why did it suddenly drop so much?
The market generally believes that Ideal Motors' sharp decline this time is related to the significant reduction in holdings by Wang Xing, CEO of Meituan and non-executive director of Ideal Motors!
According to data disclosed by the Hong Kong Stock Exchange, from September 12th to 15th, Wang Xing reduced his holdings of Ideal Motors for four consecutive days, with a total reduction of 1.9479 million shares and a total cash-out amount of approximately HKD 311 million.
In March of this year, Wang Xing reduced his holdings of Ideal Motors nine times in ten days, with a total cash-out amount of HKD 420 million. This means that Wang Xing's cumulative cash-out amount for the year has reached HKD 731 million.
Under multiple large-scale reductions in holdings, although Ideal Motors claims that Wang Xing's stock sale is a personal action, the market is still concerned about potential selling pressure in the future!
On the other hand, Ideal Motors is directly competing with Huawei, and Wall Street believes that this may put pressure on Ideal Motors.
Previously, Huawei released its first sedan, the Smart Selection S7, which will officially launch in November. The Smart Selection M9 has announced that it will be released in December, and the AITO Smart Selection M7 series has recently seen a surge in orders, with daily orders exceeding 1,500 units.
Daiwa Securities pointed out that considering the direct competition between Ideal Motors and Huawei, the strong daily order volume of the Smart Selection M7, and the upcoming release of the Smart Selection M9, it is recommended that investors pay attention to more detailed information about Ideal MEGA in the coming months.
There is also a point worth noting from the fundamentals: the car price war led by Tesla this year has been quite crazy, and the market cannot hide its concerns about car stocks. Although Ideal Motors' sales continue to reach new highs, investors are still paying close attention to the impact of the "price war" on the company.