Why Nio Stock Plunged Today
Nio (NYSE: NIO) stock plunged today, sinking as low as 7.2% as of 12:47 p.m. ET. With today's fall, the electric vehicle (EV) stock extended its steep losses from the previous day and was down 15.8% through the week and a staggering 45% in one month, as of this writing. A huge price cut from an analyst amid a jarring sell-off in Chinese stocks sent Nio shares plunging.
Barclays analyst Jiong Shao has slashed Nio stock's price target to $19 a share, as reported by The Fly. That's a dramatic U-turn, as the analyst had awarded Nio stock a price target of $34 a share earlier this year on the back of bullishness about China's EV market. Turns out, China is to blame for Nio stock's price target cut.
Chinese stocks plunged on Friday, with Hong Kong's Hang Seng stock index tumbling to levels not seen since 2009. Ever since President Xi Jinping secured a third term in power earlier this week, investors have dumped Chinese stocks as they fear the nation will double down on its zero-COVID policy under Xi and drive the economy toward a slowdown.
Source Fool.com
