Why Nio Shares Are Down Again Today
Shares of Chinese electric vehicle (EV) maker Nio (NYSE: NIO) haven't had a good week. Nio's American depositary shares have steadily declined over the past five trading days for a total of nearly 10%. That includes today's 4.4% drop, as of 12:20 p.m. ET.
Investors are starting to feel the weight of a string of macroeconomic news out of China that could impact Nio and other EV makers there. Earlier this week, data released by China's National Bureau of Statistics (NBS) showed a number of key economic indicators fell short of expectations. That led the People's Bank of China to lower interest rates by 10 basis points, in part to help spur consumer demand.
That comes just as manufacturers like Nio have been ramping production back up after COVID-19-related lockdowns stymied both production and demand for electric vehicles this past spring. Most recently, a drought in central China has led authorities to have manufacturers cut back on power consumption. While those restrictions are ongoing, and ultimate impacts aren't yet known, Nio and other EV makers may be affected by a drop in battery production due to the drop in hydroelectric power supply.
Source Fool.com
