Nio's Shares Are Down by More Than 37% This Year: Is It Time to Buy?
Investors in Nio (NYSE: NIO) have been on a roller-coaster ride in 2021, but most of that ride has been downhill. As of the close of trading on Friday, shares of the Chinese electric vehicle (EV) company were down by around 54% from its highest-ever trading price of $66.99 in early January and off by more than 37% year to date.
The reasons for that deep plunge are myriad. Among other issues, investors are concerned about the rapidly spreading omicron COVID-19 variant and its possible impact on the global economy, ongoing semiconductor chip shortages, increasing U.S. regulatory scrutiny on foreign companies, and fears that a debt default by massive Chinese property developer Evergrande Group might set off a financial crisis in Nio's home market.
In addition, Nio's vehicle shipments declined sharply in October. All that, in combination with rising competition from both Chinese EV rivals such as XPeng (NYSE: XPEV), Li Auto (NASDAQ: LI), and BYD, and legacy automakers like Toyota Motor and Ford Motor Company, has put a damper on investor sentiment for the stock.
Source Fool.com
