Why Nio Shares Bounced Back Today
Shares of Nio (NYSE: NIO) dropped 3.5% yesterday after disappointing guidance from a competitor. But investors seem to be having second thoughts today as Nio itself gets closer to providing an update of its own. Shares jumped 4.9% as of 11:20 a.m. ET on Wednesday, gaining back all of Tuesday's losses.
On Tuesday, fellow Chinese EV maker XPeng disappointed investors with a second-quarter report that showed a wider net loss than expected. But investors also focused on the company's guidance for third-quarter deliveries, which were significantly short of expectations.
Nio investors reacted to what XPeng said about its struggles to overcome continued challenges presented by impacts of COVID-19 in China. But further analysis showed some of what is pressuring XPeng's vehicle sales might not be applicable to Nio.
Source Fool.com
