Why Is NIO Stock Down 7% Today?
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Nio (NYSE:NIO) stock isn’t doing so hot on Friday and investors can look to rival EV maker Tesla (NASDAQ:TSLA) to understand why.
The big news NIO traders need to know about today is Tesla cutting prices in China. The EV leader is reducing the price of its Model Y and Model 3 EVs in the country. This has them starting at around $37,000 and $32,700, respectively.
Investors will note that those new prices are massive discounts compared to what those EVs go for stateside. The price reduction comes as Tesla has seen a slump in EV deliveries in China over the last year.
That makes sense as many companies in the EV market didn’t do well in 2022. This was partially due to the ongoing effects of the Covid-19 pandemic, rising inflation, as well as worries a recession is on the horizon.
What This Means for NIO Stock
If Tesla, the top EV company, isn’t doing well, it doesn’t look good for its rivals, either. That’s hitting traders’ morale today as it could mean trouble for NIO. Lower prices from Tesla could force Nio to follow suit if it wants to remain competitive with the EV giant.
Investors aren’t reacting well to today’s news. As of Friday afternoon, NIO stock is down 7% with nearly 50 million shares traded. The company’s daily average trading volume is about 61 million shares.
There’s more recent stock market news investors need to know about below!
We’ve got all of the latest stock market coverage traders will want to read about on Friday! A few examples include why shares of AMC Entertainment (NYSE:AMC), Compass (NYSE:COMP), and DCP Midstream (NYSE:DCP) are in the news. You can read all about that at the following links!
More Friday Stock Market News
- CEO Adam Aron Is the Largest ‘Retail Shareholder’ in AMC Stock
- Compass Layoffs 2023: What to Know About the Latest COMP Job Cuts
- DCP Stock Pops on Phillips 66 Acquisition News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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