Why Nio Shares Dropped Again Today

Chinese electric vehicle (EV) maker Nio (NYSE: NIO) held its annual Nio Day event last weekend where it unveiled its latest new electric sedan. Though customers appear to be eager to purchase one, Nio stock's continued decline has resulted in a 22% drop in the stock's value over the past month. Today, shares dropped almost another 3% before recovering some of that loss. As of 1:40 p.m. ET, Nio's American depositary shares (ADS) were still down about 1.2%.

Nio hasn't put out any company-specific news today, but it introduced its new ET5 electric sedan last weekend, which it hopes will compete with Tesla's (NASDAQ: TSLA) Model 3. With Tesla CEO Elon Musk making news again today, it may be that investors are shunning Nio shares for Tesla stock. But Nio has more than just the ET5 in its plans to expand from here.

Nio plans to begin delivering its new ET5 sedan in September 2022. Image source: Nio.

Source Fool.com