Why Nio Stock Crashed in December and Continues to Fall
Hot electric vehicle (EV) stock Nio (NYSE: NIO) lost steam in December and tumbled 19% during the month, according to data provided by S&P Global Market Intelligence. Nio put a major investor concern to rest the very first day of December and then went on to host an impressive annual day event that gave investors in the EV stock much to look forward to.
The stock, though, failed to sustain momentum as investors tried to gauge the potential impact of macroeconomic concerns and ever-rising competition in Nio's home market on the EV maker's prospects. Here's all you need to know.
Nio dropped a bomb in November when it reported a 27.5% drop in vehicle deliveries for the month of October at a time when rivals saw their sales surge. Although Nio primarily blamed the upgrade of its manufacturing lines ahead of new product launches for lower production, the market became wary and started speculating about Nio failing to navigate supply constraints.
Source Fool.com
