Core Viewpoint - Nio's stock experienced a significant decline following a disappointing quarterly earnings report, despite earlier gains due to subsidy announcements. The company's outlook remains uncertain amid increased short selling and potential share dilution from a new offering [1][2][9]. Financial Performance - Nio's Q4 and FY earnings report revealed an earnings per share (EPS) miss and revenues below expectations, leading to weaker guidance [1]. - The stock price dropped to $3.93 by March 27, representing a 24.71% decrease from its YTD high of $5.22 [2]. Analyst Sentiment - Despite recent setbacks, Wall Street analysts maintain a consensus 'hold' rating on Nio, with an average 12-month price forecast suggesting a potential upside of 16.35% [3]. - There is a noted disconnect between analyst coverage and market actions, as the short volume ratio for Nio shares increased sharply post-earnings report, indicating heightened bearish sentiment [4]. Market Activity - The short volume ratio rose from 41.18 on March 21 to 67.71 by March 27, reflecting increased bearish interest among investors [4]. - A recent announcement indicated that Nio plans to offer up to 118.8 million shares outside the U.S., which could lead to approximately 5.77% dilution of existing shares [9][10]. Growth Prospects - Nio has shown year-over-year growth in vehicle deliveries, but this has not translated into improved financial performance, raising concerns amid unstable macro conditions and weak guidance [7]. - The proceeds from the new share offering are intended for research and development, which could serve as a growth catalyst if managed effectively, although benefits may take time to materialize [10][11].

Core Viewpoint - Tesla's stock has faced significant bearish sentiment, leading to a decline of over 50% since its peak in December 2024, resulting in a market capitalization drop of $700 billion, while short sellers have profited significantly during this downturn [1][2]. Group 1: Stock Performance - Tesla's stock initially rose post-election due to CEO Elon Musk's ties with President Trump but has since lost most of those gains, with a decline of over 50% from its December peak [2]. - The stock was valued at $238.01 at the close of the last trading session, down 37% year-to-date, and extended its weakness to $229 in pre-market trading [6]. - RBC Capital lowered its price target for Tesla from $440 to $320 while maintaining an 'Outperform' rating, indicating a potential upside of 36% from the current valuation [7]. Group 2: Short Selling Activity - Short sellers have capitalized on Tesla's stock decline, making a profit of $16.2 billion since the stock's peak, with short interest increasing by 16.3% in the past month, totaling 71.5 million shares shorted [1][3]. Group 3: Market Challenges - Tesla faces headwinds from backlash against Musk's political views, impacting sales in key regions like Europe, and increasing competition from companies like BYD in the electric vehicle market [4]. - The company is also affected by President Trump's tariffs, with Canada threatening to impose 100% tariffs on Tesla following U.S. tariffs [5]. - Global interest in short selling Tesla stock has reached a one-year high, with Canada leading this trend [5]. Group 4: Future Outlook - Investment strategist Shay Baloor argues that the market has misjudged Tesla, suggesting it is more than just an electric vehicle company and is positioned as a leader in AI and autonomy, with significant potential expected to unfold by 2026 [8].