NIO (NYSE:NIO) shares are trading lower on Friday. Weakness appears related to growing U.S.-China tensions after China ordered the U.S. to close the consulate in Chengdu, which has affected Chinese and American markets.
Increasing U.S.-China tensions could mean an increase in tariffs and banning certain companies from the opposing country. Whether or not trade tensions impact a certain sector directly, the implications could spread macroeconomically and hurt the overall economy.
Nio operates in China's premium electric vehicle market. The company designs and jointly manufactures, and sells smart and connected premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving, and artificial intelligence.
Nio's stock was trading 4.03% lower at $11.65 at the time of publication on Friday. The stock has a 52-week high of $16.44 and a 52-week low of $1.19.