Why Nio Stock Is Down Today
A drought in China's Sichuan province is straining local electric grids and threatening both electric vehicle (EV) charging stations and suppliers based in the region. Shares of Nio (NYSE: NIO) fell as much as 3% on Thursday on concerns about how the issue could ripple through the country's automotive industry.
Nio is one of the Chinese electric vehicle market's top success stories, both in terms of selling automobiles in China and Europe and building a strong brand in its home country. But the company's operations reportedly could soon be under pressure due to the hot, dry Chinese summer.
Low water flows through Sichuan in central China have cut into hydroelectric power production in the region, forcing the closure of some manufacturing operations. Among the factories impacted is a massive battery plant run by Toyota Motor and Contemporary Amperex Technology (CATL), which supplies batteries to Nio and other electric vehicle manufacturers.
Source Fool.com
