Why Tesla, Nio Stocks Can't Seem to Stop Falling
The stock market has had a horrific 2022, and investors have hoped that they'd get some relief in the last week of the year. Tuesday morning brought the promise of at least a mild bounce for the financial markets, as stock index futures were modestly higher before the market open.
Many market participants pointed to news from China as a reason for the gains, as the Chinese government announced that it would lift many pandemic-related restrictions on incoming international travelers in early January. Yet shares of electric vehicle (EV) stocks Tesla (NASDAQ: TSLA) and Nio (NYSE: NIO) continued to move lower in premarket trading on Tuesday morning, and questions about the sustainability of demand for EVs in China and elsewhere around the world are a big part of why the two EV stocks have been stuck in a big downtrend lately.
Shares of Tesla fell about 5% in premarket trading early Tuesday. The pioneering EV manufacturer was the subject of multiple reports that it has made changes to its current and future production plans at its Gigafactory in Shanghai.
Source Fool.com
