Why Nio Shares Dropped Tuesday
Nio (NYSE: NIO) investors are trying to balance new catalysts for the Chinese electric-vehicle (EV) maker with a short-term issue that has Nio's production on hold. That dichotomy had Nio's American depositary shares jumping as much as 3% in early trading Tuesday, before reversing course. As of 1:04 p.m. ET, shares had retreated and were down 0.6% from Monday's closing price.
Nio started deliveries of its newest offering -- and first sedan model -- late last month. The ET7 is a luxury sedan that will compete with Tesla's (NASDAQ: TSLA) Model S, which it makes in the U.S. company's Shanghai factory. Even after Tesla had announced a price increase for its China-made vehicles, Nio held firm on its pricing. But now, Nio is being hit with two items of bad news.
Nio increased prices of its ES6 and other SUV models to combat rising raw material costs. Image source: Nio.
Source Fool.com
