Why Nio Stock Plunged 12% This Week, but Could Bottom
Nio (NYSE: NIO) stock plunged this week and had fallen 12.4% in five days as of 2 p.m. ET Friday, according to data provided by S&P Global Market Intelligence. There weren't many updates from Nio this week, but the few that there were could have driven shares of the electric vehicle (EV) manufacturer higher, if not for concerning news from China.
Nio shares took a deep dive last week after the company said it had suspended operations in China to adhere to the COVID-19 lockdown rules. Just days earlier, Nio delayed the launch of its ES7 SUV by a month to May.
Unlike Tesla, whose Shanghai Gigafactory had been shut since March 28, Nio didn't have to shut down its plant for weeks. China-based website CnEvPost reported Nio restarted its Hefei plant within days of suspending operations as its supply chain improved. Tesla, for that matter, reopened its plant mid this week.
Source Fool.com
