Why Nio Stock Bounced Back Today
After Chinese electric vehicle maker Nio (NYSE: NIO) released its August delivery and guidance update yesterday, investors immediately began selling. The company's American depositary shares dropped about 4% early in yesterday's trading, though they recovered most of that decline by the end of the day. And those shares are bouncing back more early Thursday, with gains of about 3.5% as of 10:20 a.m. EDT.
With Nio's $66 billion market cap, investors value it on its potential rather than its current business. When the company reported that it delivered 5,880 vehicles in August, and that it was "prudently" lowering guidance for the third quarter due to supply chain issues, some shareholders didn't wait to take money off the table. That level of vehicle deliveries represented a more than 25% sequential drop versus July 2021 deliveries.
Source Fool.com
