Why Nio Shares Were Down Over 5% Friday
Nio (NYSE: NIO) pleased investors with its forward projections when it reported third-quarter earnings a month ago. But another Chinese electric vehicle (EV) maker's third-quarter report has Nio shares dropping in sympathy today. Nio shares were trading near the day's low, down 5.3% as of 3:45 p.m. ET.
When Nio announced its quarterly results on Nov. 10, it told investors vehicle deliveries increased almost 30% year over year. But what really caught investors' attention was the projection for fourth-quarter deliveries to surge as much as another 52% sequentially from the third quarter. Today, Li Auto (NASDAQ: LI) said it also expects to deliver up to 48,000 EVs in its fourth quarter. That would represent a more than 80% jump over its third-quarter shipments.
That would seem to indicate that the production and demand environment remain strong in China, despite recent restrictions enacted to slow the spread of COVID-19. Those restrictions are starting to ease, too, which should be another positive development. So why did Li Auto stock tank today, bringing Nio along for the ride?
Source Fool.com
