Why Nio Stock Plunged Thursday
First-quarter earnings were released today by Chinese electric vehicle (EV) maker (NYSE: NIO). The company lost slightly more than the market anticipated on sales that also disappointed investors. But it isn't all bad news for investors.
Still, the market reaction led to as much as a 10% drop in Nio's American depositary shares. As of 11:45 a.m. ET, the stock recovered some of that decline, but was still down by 6.7%. While well off the lows of the year, Nio shares are now down by about 45% in 2024.
Nio reported a first-quarter loss of $0.36 per share from sales of $1.37 billion. Wall Street expected sales of $1.5 billion and a slightly better bottom line, according to FactSet. Vehicle deliveries dropped by 3% year over year, while sales slid by 7%. That highlights the competitive EV environment that has pushed prices lower as EV makers work to maintain, or even gain, market share.
Source Fool.com