Why NIO Stock Is Falling

NIO Inc – ADR (NYSE:NIO) shares are trading lower by 6.72% to $5.14 Thursday and lower by 16% since Monday’s open, as investors continue to express doubts about China’s latest stimulus measures.

What’s Happening: Despite Beijing announcing support for low-income households and the property market, the lack of concrete figures and specific help for the electric vehicle (EV) sector left markets unimpressed.

NIO, a key player in China's EV market, relies on government subsidies and strong consumer demand. While earlier reports suggested a potential 2 trillion yuan ($284.4 billion) stimulus, no definitive commitments materialized. This raised concerns that economic uncertainty could weaken demand for high-end EVs.

Adding to NIO's challenges are U.S.-China tensions, which restrict access to vital technologies like semiconductors and AI, critical for EV innovation. With slowing economic growth and increased competition, NIO's stock reflects market worries that the stimulus may fall short in boosting the EV industry and overall recovery.

What Else: Meanwhile, per a report form the Associated Press, China on Thursday said it plans to expand financing for housing projects on a “white list” to 4 trillion yuan ($562 billion) and will redevelop 1 million urban villages, as part of efforts to revive its struggling property sector.

Officials noted that the housing market has “bottomed out” after three years, with recent data showing a rise in property sales, following measures to stabilize the sector after a borrowing crackdown.

Read Also: What’s Going On With Marvell Technology Stock?

How To Buy NIO Stock

By now you're likely curious about how to participate in the market for NIO – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of NIO, which is trading at $5.25 as of publishing time, $100 would buy you 19.05 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, NIO has a 52-week high of $9.57 and a 52-week low of $3.61.