Shares of Nio (NYSE: NIO) are tanking Monday morning. There are two things contributing to the move, its seems. Nio American depositary shares were down nearly 9%, and remained 7% below Friday's closing price as of 10:28 a.m. ET today.
The first news that has investors spooked might actually end up being good news for Nio. But the report that the company is forming an independent committee to investigate prior allegations made by a short-seller invoked a negative reaction today.
There is also pressure on Nio shares today from another COVID-19 increase in China. Hong Kong's Hang Seng index lost 2.8% Monday after it was announced that Macao would be closing all its casinos for one week to try to stop further spread. That is hitting Chinese automaker stocks as they have only recently ramped production back up from previous lockdowns that hurt both production and sales.
Source Fool.com