Why Nio Shares Dropped Friday
Shares of Chinese electric vehicle (EV) maker Nio (NYSE: NIO) dropped as much as 4% Friday morning, extending what has become a nearly two-week decline. While it gained some of today's losses back, Nio's American depositary shares were still down by 2.6% as of 11:35 a.m. ET.
The decline started when the company reported its January delivery data. But Nio also just announced some positive news that highlighted the company's strategy of becoming more than just a seller of electric cars. Like sector leader Tesla, Nio has a burgeoning energy business, and it just released an update regarding those services.
Nio has differentiated itself from other global EV makers with a battery-as-a-service (BaaS) option that allows customers to lower the upfront cost of Nio's vehicles and instead pay a subscription to use Nio's power swap station network. Now the company is trying to grow its business in Europe by leveraging that power products and solutions segment.
Source Fool.com
