Here's Why Nio Shares Bounced Early Today
Shares in Nio (NYSE: NIO) have been getting crushed recently, tumbling more than 25% in just the last five trading days. That's come as investor concern has grown over production delays, supply chain challenges, and the potential for its U.S.-listed shares to be delisted. But some of those uncertainties are being clarified today, helping shares pop nearly 7% early Wednesday. The stock gave back those gains, however, as the broader market reversed course. As of 1:22 p.m. ET, Nio shares had moved down 2.2% for the day.
Shares backtracked as the growth and technology sector lost steam today, but the news that boosted the stock early remained. One of the biggest headwinds has been related to the potential for its American depositary shares (ADSs) to be delisted by U.S. regulators. But Nio announced today that it is proceeding with a secondary listing that could benefit ADS holders, too.
Image source: Nio.
Source Fool.com