The American depositary shares of Chinese electric vehicle (EV) maker Nio (NYSE: NIO) dropped as much as 5% Thursday. Even after bouncing back slightly, the stock remained lower by 4.2% as of 3:25 p.m. EST.
There has been good news from China's EV sector this week, but investors are realizing that might not necessarily mean good news for Nio. The China Passenger Car Association (CPCA) just released February auto sales numbers, and it was a strong showing for EVs. But investors are thinking that Nio won't be one of the beneficiaries.
That's especially true based on the company's own first-quarter vehicle-delivery projections. After shipping over 40,000 electric cars in Q4, management doesn't expect to deliver more than 33,000 in Q1. So when the CPCA data showed how much EV sales are outpacing gasoline-powered cars to start 2023, it is particularly disappointing for Nio investors.
Source Fool.com