Rather than wait until Thursday, I would like to let you know that I’m moving Nio Inc. (NIO) to a sell following its 7% decline Tuesday following disappointing news that electric vehicle subsidies in China are being cut 50%.
If you purchased NIO at the initial recommendation and sold half of your position as I recommended after the 30% surge during the first week, you should be close to breakeven overall.
NIO has been more volatile than expected but I still believe in the story so will keep it on the watch list.
In addition, while not formally in the portfolio because it trades on the Australian stock exchange, Lynas (LYC.AS) was profiled in the special report on electric vehicles that was available to members in early 2019.
Lynas is the second largest rare earths company in the world and its leading rare earths products are critical to electric vehicle (EV) motors.
Lynas has received a cash offer from Wesfarmers at a 45% premium to Monday’s share price.
Tuesday, Lynas was up 35% to reach $2.1 (Australian dollar).
Given that financing is not an issue, the Lynas share price should move upward to the 45% premium offer but I still advise that you sell at least half your shares at the current price to lock in a 35% gain.