Why Nio Stock Dropped in August
China is the largest automotive market in the world, and investors have been following growing electric vehicle makers there, like Nio (NYSE: NIO), giving it a market capitalization of more than $60 billion even with the company yet to reach profitability. So it is not surprising that the stock has been volatile. In August, that volatility led Nio shares to drop 12%, according to data provided by S&P Global Market Intelligence.
Automakers globally have been battling supply chain issues, and they have begun to affect Nio as well. As far back as March 2021, Nio adjusted its production schedules to deal with the shortage in semiconductors. But it was able to make up for those earlier disruptions.
Nio ES8 electric SUVs being loaded onto a ship for delivery to Norway. Image source: Nio.
Source Fool.com
