Why Nio Shares Plunged Today
The American depositary shares of China-based Nio (NYSE: NIO) were plummeting Wednesday morning. Shares dropped as much as 9% and remained down 8.1% as of 11 a.m. ET. Two news items out of China have investors in the electric vehicle (EV) company selling today.
First, Nio and its EV peers in China have been negatively impacted by lockdowns driven by China's "zero-COVID" policy. The company seemed to imply that headwind was behind it now, as it estimated deliveries for the fourth quarter would increase between 36% and 52% over the third quarter. But China just locked down Peking University in Beijing due to a single COVID-19 case, the Associated Press reported today, demonstrating that the strict policy continues to be enforced.
Those lockdowns haven't just impacted production. Consumer demand has also taken a hit, and another report today implies that automakers in China are still struggling to bring customers back into the market.
Source Fool.com
