Nio Stock Plunges Before Earnings: Should You Buy?
Nio (NYSE: NIO) is all set to report its fourth-quarter and full-year numbers on Thursday. It will be one of the most anticipated reports of the season in the electric vehicle (EV) industry for the simple reason that Nio is viewed as the closest competitor to EV leader Tesla (NASDAQ: TSLA) in China, the world's largest EV market.
It was also one of the most hyped EV stocks to debut on the U.S. stock market last year, until the company ran into a series of negative catalysts -- an abrupt drop in deliveries in October, a cut in government subsidies on new energy vehicles in China at the beginning of this year, and the threat of Chinese stocks getting delisted from U.S. exchanges, to name a few.
Momentum for Nio stock was noticeably building until last week, driven partly by recent developments in China. The EV maker, though, kicked off this week on a weak note; Nio stock plunged Monday morning. Is this an opportunity for you to buy the stock before earnings?
Source Fool.com
