Why Nio Stock Is Sinking Further Today
After a steep fall Thursday, shares of Nio (NYSE: NIO) were down another 4.8% as of noon ET Friday.
Investors are displeased with the electric vehicle (EV) maker's latest quarterly numbers, analysts are slashing their price targets on its stock, and, more broadly, growth stocks are tumbling Friday on news that U.S. inflation just hit a 40-year high in May.
The inflation news is particularly bad for growth stocks like Nio, as both high inflation and the higher interest rates with which the Federal Reserve will fight it increase the cost of doing business, making it more difficult for those companies to grow.
Source Fool.com