Nio's (NYSE: NIO) American depositary shares plunged by as much as 6.6% Wednesday morning after the Chinese electric vehicle (EV) maker released its fourth-quarter earnings report. As of 10:35 a.m. ET, shares were still down by 5.5%.
Nio reported a fourth-quarter loss of $0.51 per share on revenue of $2.3 billion. Wall Street analysts had been expecting a loss of $0.26 per share on sales of about $2.5 billion. But those figures weren't the only reason traders were selling the stock Wednesday. The morning's drop extends a month-long trend that has now seen the shares decline by more than 25%.
Investors have been hoping the EV company would show it has recovered from a production and sales slowdown caused by COVID-19 restrictions in China. While it did show a big improvement in vehicle deliveries sequentially from January to February, the company disappointed investors with its outlook.
Source Fool.com