Why Investors Threw Nio Stock Into Reverse Today
The slowing growth of electric vehicle (EV) sales slowed Nio (NYSE: NIO) stock on Friday. Investors were concerned for top EV names after a big bank published a research report highlighting recently reduced growth numbers. Nio's share price took a 3% hit as a result, on a day when the S&P 500 index battled to a nearly 0.6% gain.
The report's author, UBS analyst Patrick Hummel, delved into the findings of the seventh annual Evidence Lab EV consumer survey. This year's version found that 46% of survey respondents are likely to consider buying an EV, which is three percentage points below the 2022 study. This marks the first year-over-year decline since UBS launched the yearly poll in 2016.
While Hummel expressed continued optimism for the global expansion of the EV segment, he trimmed estimates for the European market because of factors such as higher electricity prices and lower government subsidies for EVs.
Source Fool.com
