Why Nio Shares Spiked Thursday
There are plenty of challenges in China's electric vehicle (EV) sector right now, but Nio (NYSE: NIO) shares jumped over 8% early Thursday anyway. While they pared some of those gains, as of 12:37 p.m. ET, Nio's American depositary shares remained 6.1% higher.
Nio investors can thank the Chinese government for today's boost. Nio and other EV manufacturers continue to face new challenges even as they work to recover from lost production and a drop in demand related to zero-COVID policy lockdowns in several cities.
Most recently, a major drought has caused hydroelectric power supply to drop, resulting in power cuts mandated by authorities. But the government also just announced a stimulus package to try and reinforce growth in the economy.
Source Fool.com
