Why Nio Stock Is Falling Today
Some investors were dumping Nio's (NYSE: NIO) stock today after rival XPeng, another Chinese electric vehicle (EV) maker, reported its first-quarter financial results. XPeng's results were mostly good, but revenue could be hampered by COVID restrictions in the second quarter, which led to the company issuing lower-than-expected sales guidance for the quarter.
Nio investors are worried that if XPeng is continuing to feel the pinch from strict COVID regulations in China, then Nio will, too. As a result, the EV stock is down 6.5% as of 11:20 a.m. ET.
Both Nio and XPeng are based in China, and the Chinese government has a strict "zero-COVID" policy that requires companies, production facilities, and even cities to shut down when coronavirus cases are detected.
Source Fool.com
