Here's Why Nio Stock Popped Then Dropped Monday
Stocks in many areas of the electric vehicle (EV) sector have been active for the last few weeks since Rivian Automotive made a big splash with its initial public offering (IPO). Chinese EV maker Nio (NYSE: NIO) reported its third-quarter earnings the day prior to that IPO, and investors seemed to be content with that report. Today, the stock initially popped after a competitor reported its third-quarter results. Nio's American depositary shares (ADS) jumped 3% in early trading Monday, but lost those gains with a decline of 1% as of 10:45 a.m. ET.
Today's early jump came after Li Auto reported it more than tripled its revenue in the third quarter compared to the prior-year period. It also delivered more vehicles in the quarter than Nio for the first time. That news could be deemed both good and not so good for Nio, however, helping to explain today's stock moves.
Image source: Nio.
Source Fool.com
