Why NIO Stock Dropped and Then Recovered Today
Chinese electric vehicle (EV) maker NIO (NYSE: NIO) has a market cap of more than $70 billion, so a small percentage move in the stock isn't overly impactful. But investors may have reacted to the loss of an executive this morning when the stock dropped over 2% early in the session. The stock did reverse course, however, and as of 3:30 p.m. EDT, shares were up 2% on Tuesday.
The initial drop might have been in response to news that the company's vice president for software product management was leaving to work for General Motors (NYSE: GM). Rachad Youssef has become chief product officer for GM's BrightDrop EV subsidiary, effective immediately. GM already has a significant presence in China, and the poaching of a NIO executive might have concerned some investors. But BrightDrop isn't currently direct competition for NIO, which could explain the reversal that moved shares back in the black today.
Source Fool.com