Why Nio Shares Dropped Early Today
Shares of Chinese electric-vehicle (EV) maker Nio (NYSE: NIO) dropped nearly 5% in early trading today. They have since recovered, but the concern that caused the decline remains. As of 1:45 p.m. ET, Nio shares had reversed course and gained 1.5%.
The drop didn't hold, but there's still news that may portend problems ahead for the company. Nio was forced to limit production in the second quarter due to pandemic-induced lockdowns in some Chinese cities. Shutdowns in Beijing and Shanghai disrupted Nio's supply chain.
The company only delivered 12,098 vehicles in April and May combined, due to those production delays. As those issues eased, however, the company recovered and reported more than 12,900 deliveries in June alone.
Source Fool.com
