Why Nio Stock Plunged This Morning

Nio (NYSE: NIO) stock plunged this morning, crashing 11.2% within two minutes of the market's opening. The hot electric vehicle (EV) stock gained some ground quickly thereafter, but was still down 5.2% as of 10:30 a.m. ET Monday.

Investors dumped Nio shares fast and furiously in response to the company making two announcements they absolutely didn't want to hear.

For some weeks, speculation was ripe that Nio's growth could decelerate in the wake of surging coronavirus cases in China that's put several cities, including financial hub Shanghai, under a complete lockdown. Tesla suspended operations at its Gigafactory in Shanghai on March 28, and while the EV giant expected to restart operations within four days, there are no signs of it reopening yet.

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Source Fool.com