Why Nio Stock Plunged Thursday
Shares of Chinese EV maker Nio (NYSE: NIO) have bounced around in March as investors balanced geopolitical risks with near-term catalysts for its growing business. In the first half of the month, shares dropped more than 20%. But the stock rebounded more than 30% in the final two weeks of March. Today, the fears that drove the early declines took back the headlines. Investors reacted as they did in early March, with Nio shares down 5.6% as of 1:30 p.m. Thursday.
That's because concerns over the delisting of Chinese stocks on U.S. exchanges has investors spooked once again. Yesterday, the Securities and Exchange Commission (SEC) named another set of five Chinese companies that could face delisting if they fail to disclose proper financial audits to U.S. regulators. Nio wasn't one of them, but it seems some investors are getting scared out of Chinese names in general.
Nio is delaying the launch of its newest ES7 SUV by at least one month. Image source: Nio.
Source Fool.com
