Why Nio Popped Then Dropped Monday
Nio's (NYSE: NIO) American depositary shares jumped 6% Monday morning, but that gain didn't hold for long. Investors initially carried Friday's rally in shares of the Chinese electric vehicle (EV) maker into this morning's trading. But as of 10:30 a.m. ET, Nio stock had reversed course and was trading down by 3.3%.
The stock's early surge came for the same reason as the double-digit rally Nio saw on Friday. Namely, the hope that China will relax COVID-19-related restrictions that have hurt both supply and demand in the EV sector. But the Chinese government signaled over the weekend that its "zero-COVID" policy would remain, according to a Barron's report.
Source Fool.com
