Why NIO Stock Lost 20% of Its Value Last Week
The electric vehicle industry has been on fire in 2020, and companies across the globe that are specializing in coming out with EVs and EV-related technology have seen their stocks fly higher. One of the biggest winners of the year in the space has been China's NIO (NYSE: NIO), with its share price having soared 970% so far this year as of Dec. 4.
However, NIO's year-to-date gains have been much higher recently. In fact, just last week, NIO's stock closed with a gain of 1,240%. In just five trading sessions, a drop of more than 20% has cost longtime shareholders in NIO a significant portion of their profits.
Many investors wonder if NIO's drop this week is a momentary blip in the EV stock's inexorable march higher or if it marks a true reversal in thinking about the company. Below, we'll look at what prompted this week's move lower and what the future might bring.
Source Fool.com
