Why Nio Stock Dropped Today
Chinese regulators have ramped up their involvement in several sectors recently -- most notably the tech sector as well as Chinese education companies. But that's beginning to spread, and investors don't like uncertainty. The stock of electric vehicle maker Nio (NYSE: NIO) took a hit earlier this week when the EV sector got mentioned. Today, Nio shares are dropping again, as another industry comes under scrutiny. After dropping as much as 2.5% earlier, as of 1:25 p.m. EDT the stock was down almost 1%.
Image source: Getty Images.
Most of the news regarding Chinese regulators clamping down on public companies was related to the big tech and adult education sectors. But on Monday, China's industry and information technology minister implied the government will work to consolidate the electric vehicle industry, too. He specifically said the country has "too many" EV makers.
Source Fool.com
