Why Nio Stock Dropped the Last Day of 2021

After a torrid run the previous day, electric vehicle (EV) stock Nio (NYSE: NIO) lost momentum the last day of 2021 and was down about 1.1% as of 12:50 a.m. ET. A major development in China is to blame for Nio shares ending Dec. 31 on a muted note.

This morning, China's Finance Ministry announced a steep cut in and eventual scrapping of subsidies it currently offers to buyers of new energy vehicles (NEV). The Ministry said NEV subsidies will be cut by 30% in 2022 and then stopped altogether after Dec. 31, 2022.

Image source: Nio.

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Source Fool.com