Why Nio Stock Is Firing Up After Morning Slump
Nio (NYSE: NIO) stock sank this morning, only to bounce back swiftly, taking investors by surprise. At 9:42 a.m. ET on Tuesday, shares of the electric-vehicle (EV)-manufacturer were trading down 6%. At 10:44 a.m., Nio stock was up 7.3%.
Panic selling has gripped the Hong Kong stock market, with institutional investors reportedly dumping stocks aggressively. The Hang Seng index plunged nearly 12% in just the past five trading days to hit six-year lows on March 15, driven by geopolitical concerns, U.S. regulatory moves, and the COVID-19 pandemic that has gripped China and Hong Kong.
Shares of Nio and its rival Chinese EVs have crumbled in Hong Kong in recent days. On March 15, Nio stock opened 8.1% lower in Hang Seng, while Li Auto (NASDAQ: LI) opened almost 15% lower. The ripple effects were felt in the American depositary shares of these companies in the U.S. this morning, with fears of potential delisting of these stocks from the U.S. exacerbating the market's fears.
Source Fool.com