Why Nio Stock Crashed Today
Nio (NYSE: NIO) stock crashed Thursday morning, sinking 6.5% lower as of 11:25 a.m. ET. The Chinese electric vehicle (EV) manufacturer is upping up its battery swap game and even setting up a battery manufacturing business. Yet the overhang from China -- also Nio's largest and domestic market -- is weighing on its shares.
Investors in Chinese stocks are already scurrying for cover after Chinese leader Xi Jinping secured a third term earlier this week, as they fear Xi's ideologies, particularly his crackdowns on the private sector and zero-COVID policy, to continue. Both moves, among other things, have helped to stifle growth in the nation.
Just this morning, the latest data from China revealed a sharp year-over-year drop in profits of industrial companies for the first nine months of 2022, primarily because of COVID-19 restrictions. With news of a fresh coronavirus outbreak and more lockdowns in major cities like Wuhan and Guangzhou also pouring in from China this morning, investors dumped shares in Nio in fear.
Source Fool.com
