Why Nio Shares Are Dropping Monday
Nio (NYSE: NIO) shares are starting off the week on another down note after a more than 7% decline last week. Today, Nio shares were down 5.6% as of 11:30 a.m. ET as concerns mount over COVID-19 cases in China and economic conditions elsewhere.
Investors are counting on the fourth quarter being a pivotal time for Nio's electric vehicle (EV) sales. Nio delivered 31,607 EVs in the third quarter after averaging just about 25,000 for the prior three quarterly periods. Management expects unit sales to soar to between 43,000 and 48,000 in the fourth quarter with its new models in China and as the company's expansion into Europe gets traction. But concerns are growing about the spread of COVID-19 cases in China and recession fears elsewhere.
Image source: Nio.
Source Fool.com
