Shares of Chinese electric vehicle maker NIO (NYSE: NIO) were trading lower on Monday. There was no obvious news driving shares lower, but it may have been caught in a sell-off that affected other recently hot investments including Tesla and Bitcoin.
As of 1:15 p.m. EST, NIO's American depositary shares were down about 5.5% from Friday's closing price.
While there are good reasons to be bullish on NIO's long-term prospects, it's hard to argue with the notion that the stock has become expensive. After all, this is a company that sold just 43,000 vehicles in 2020 -- and it's still sporting a market cap nearly twice that of Ford Motor Company.
Source Fool.com