Why Nio Shares Reversed a Monday Morning Pop
Nio (NYSE: NIO) stock spiked Monday morning, but it didn't take long for it to reverse course. The volatility shows just how dynamic the economic situation is in China. Shares of the Chinese EV maker jumped nearly 7% after the market opened, but by 12:40 p.m. ET, Nio stock was down by 1.6%.
The initial pop came as China loosened COVID-19 restrictions in several large cities over the weekend. Even with coronavirus cases hovering near record highs, Chinese leadership seems to be reacting to protests from its citizens, with Beijing and Shenzhen the latest cities to roll back testing requirements.
The stock reversed those gains, however, likely in reaction to reports that could indicate a drop in demand for EVs in the country. Reuters reported that after record November deliveries, Tesla (NASDAQ: TSLA) has plans to cut production of its Model Y by 20% at its factory in Shanghai.
Source Fool.com
