Why Nio Shares Are Getting Crushed This Week
Heading into this week's final day of trading, shares of Chinese EV maker Nio (NYSE: NIO) are on track for a double-digit weekly drop. The company's American depositary shares (ADSs) are lower by nearly 12% so far this week, according to data provided by S&P Global Market Intelligence.
Investors have been shunning riskier assets recently, and Nio shares certainly should be included in that group. The Nasdaq Composite index itself has dropped more than 12% since Sept. 12. In that time, Nio shares are down 28% as unprofitable stocks have taken some of the hardest hits.
While the focus hasn't been on any specific news from Nio's business this week, there are several items to note. First, competitor Li Auto said in an update that its third-quarter deliveries were going to come up short of expectations. Li said it now expects to deliver 25,000 of its electric vehicles in the third quarter, down from previous estimates of between 27,000 and 29,000. The company said supply chain challenges are the issue and that demand remains strong. But Nio could be facing similar supply chain constraints.
Source Fool.com
