Why Nio Stock Is Crashing Ahead of 2023
Nio (NYSE: NIO) stock crashed on the last trading Tuesday of 2022, slumping nearly 7.9% as of 10 a.m. ET. The electric-vehicle (EV) maker launched two new models at the 2022 Nio Day event held this past weekend, with CEO William Li confirming the company will launch more EVs and products in 2023. These updates could have sent Nio stock higher on any other day, but today's a whole new ball game, thanks to a COVID-19 wave sweeping China.
Just as investors were starting to get jittery about how this could hurt manufacturers in 2023, Nio revealed that the damage is already underway and hurting car deliveries. This comes less than a month after the EV maker hit record monthly deliveries.
This morning, Nio said it's facing multiple challenges in the wake of the widespread outbreak of the omicron coronavirus variant in China. Because of this, it couldn't produce cars at full capacity in December.
Source Fool.com
