CNBC’s Mad Money host Jim Cramer advised investors to “stay away” from the Chinese EV stock Nio, saying “that market is flooded right now.”
Responding to a viewer question on Wednesday’s show about whether to increase their position in Nio, Cramer said: “You know, I don’t think that that is a really terrific situation.”
“I happen to think that there are better buys, and I think that market is flooded right now,” Cramer added before advising to “stay away” from the stock.
Nio shares are up 22% over the past 12 months and have gained 7% since the start of the year.
Below is CNBC’s segment where Jim Cramer comments on the Nio stock.
Cramer, who once dubbed Nio “the next Tesla” at the height of the EV boom in January 2021, has shifted to a substantially more bearish stance over the past years.
In July 2024, when the stock was trading around $4.60, he told another viewer who was considering selling: “Nio is one of those stocks where if you sell it right here, some clown will come out and be real positive about it… Let’s just wait until all that stuff happens and then you can sell it.”
Throughout 2024, Cramer has flagged intensifying EV competition and geopolitical tensions as key concerns for investors in Chinese automakers.
His latest comments come despite a more constructive tone from Wall Street.
Last week, Macquarie upgraded Nio from Neutral to Outperform, and Citi reiterated its Buy rating, pointing to improving fundamentals and early momentum for the Onvo brand.
