Why Nio Stock Dropped Friday
The Chinese government strikes the U.S. stock market again. Though today's news of a regulatory crackdown focuses on education companies in China, many U.S.-listed Chinese stocks are being hit this morning. Electric vehicle maker Nio (NYSE: NIO) is among them, with its stock down almost 6% as of 11:40 a.m. EDT.
The Chinese government has added restrictions to the private education industry, including bans on raising money through stock listings and foreign investment, reports CNBC. So why does that affect an electric car maker like Nio? Technically it doesn't -- at least not yet.
Nio ES8 SUVs awaiting shipment at Shanghai port. Image source: Nio.
Source Fool.com
