Why Nio Stock Just Dropped
Shares of Chinese electric car company Nio (NYSE: NIO) dropped 2.5% as of 12:15 p.m. ET today on some rather curious news. As DigiTimes Asia reports, the Chinese electric car powerhouse is now looking into making ... cellphones.
If true, that sounds like a strange move for Nio, but as DigiTimes explains, it kind of makes sense in an odd way, because Nio "reportedly plans to make its own phones designed specifically to interact with its cars."
Additionally, the tech news site observes that smartphone specialists such as Xiaomi, Huawei, Sony, and even Apple are all looking into the idea of designing their own electric cars. And if turnabout is fair play, well, then it perhaps shouldn't be too surprising that an automaker might be intrigued enough by this news to explore whether moving in the opposite direction also makes sense.
Source Fool.com
