Why Nio Shares Bounced Back Today
Nio (NYSE: NIO) shares had been on a bit of a roll over the last two weeks, but that run just hit a wall. Yesterday's drop came after a Chinese competitor provided its quarterly report Monday and its president warned that the second quarter has become more challenging. Nio shares continued to fall in reaction early today, lower by as much as nearly 4%. But it subsequently recovered as investors focused on more positive news. As of 11:06 a.m. ET, Nio shares were higher by 0.4%.
Mizuho Securities analyst Vijay Rakesh hosted an event with Nio management on Monday, and noted that production delays are beginning to reverse as the supply chain begins to recover from Chinese lockdowns aimed at breaking a recent wave of COVID-19 infections. That helped to offset a mixed report from fellow Chinese electric vehicle (EV) maker XPeng.
Source Fool.com
