Why Nio Shares Initially Jumped This Morning
Stocks of Chinese electric vehicle (EV) makers have been under pressure recently as expectations about their sales have dropped. Nio (NYSE: NIO) lowered its fourth-quarter delivery estimates by about 15% in a late-December update as Chinese government restrictions meant to slow the spread of COVID-19 impacted supply chains, demand, and production.
Image source: Nio.
But investors initially cheered Tuesday morning after Nio reported December deliveries that pushed the company past those lowered expectations. The stock price jumped by nearly 8% on the first trading day of 2023. It couldn't hold those gains, however, as the overall direction of the market turned negative. As of 1 p.m. ET, Nio shares were down by 2.1%.
Source Fool.com
