Nio Stock Dropped Wednesday: Is This an Opportunity?
After kicking off Wednesday on a positive note and popping by 2% in early morning trading, electric vehicle stock Nio (NYSE: NIO) shed all of those gains and then some. At the close of the session, Nio shares were down by 2.9%.
It seems investors are weighing the impact of rising competition on the Chinese automaker's prospects and finding it worrisome.
Nio's chief rival Tesla (NASDAQ: TSLA) is firing on all cylinders. After Tesla bagged an order for 100,000 electric vehicles from rental company Hertz earlier this week, it was back in the news again Wednesday after Hertz struck a deal with Uber Technologies to rent it 50,000 Tesla EVs. Although that development built on Hertz's previous order, it reflects the massive potential of the EV industry and the unmistakable traction that Tesla has already gained within it. It's also racing ahead in Nio's core market of China.
Source Fool.com
