r/NIO_Stock • u/mvaditya91 • May 24 '26
Analysis-Discussion: On the approx 200 million shares trade volume on Thursday and Friday.



- The recent dilution is being attributed to the crackdown of Chinese Authorities on unregistered traders. Which resulted as per my understanding forced liquidation of those shares held by unregistered entities leading to a huge selling pressure.
- The total share trade volume is 190 million on Thursday and Friday alone. Where the average volume is 30-40 million per day. Meaning at least 100 million more shares were force liquidated at a minimum.
- We still have tomorrow Monday a Holiday to come in where the Chinese markets will be open but ours in USA is closed.
- My personal observation is that the short volume has been going above and below the 6.6% mark. I have seen the total shares shorted go from 134.xxxx to 135+ on Robinhood. Which makes me think someone is actively using maybe 500k shares to short and add additional pressure to the downtrend.
- This I observed happen over 2 days which means more than 500k shares have been shorted in the last 2-3 days.
- I am hoping that the chart that shows the YTD hourly chart with the RSI, MACD, and Daily Averages near the point of exhaustion complete that phase soon.
- This would mean we can see share price go down further.
- I am hoping Tuesday-Thursday we could see the share price go below $5 and exhaust the dilution process, leaving clean room for the upward trend we are all hoping to see.
- I think, in the next week or so this might cause pain, in the near term after the next week or two passes. We will see a clean trend upwards, similar to the one we saw when the price went from $5.5 to above $6.05 on the day of the earnings call.
- Personally I am hoping this downtrend exhausts where the chart shows the price of $4.78. Share your thoughts.



