Nio (NYSE: NIO) shares jumped more than 5% Friday morning and were holding on to a gain of 3% as of 2:33 p.m. ET. That move was a sigh of relief from investors, who finally got some news they've been waiting for.
Nio -- like other Chinese automakers -- has been hit by multiple rounds of business slowdowns due to COVID-19-related shutdowns and drops in consumer demand over the past year. Those issues kept any recovery for Nio stock at bay. But now there are signs that might be ending and electric vehicle (EV) sales are picking back up. The stock is showing renewed signs of life as result.
The slump in EV demand has led to vehicle price drops by EV leader Tesla in China that were followed by cuts from other domestic EV makers. Initial data shows those price cuts seem to now be spurring demand.
Source Fool.com