Why Nio Stock Is Trading Lower Today

What came about

Shares of Chinese language electrical-automobile (EV) maker Nio ( NIO -11.19% ) were Trading decrease on Thursday, on rising COVID-19 concerns a day after it announced its finest month-to-month gross sales consequence so a ways.

As of 11 a.m. ET this present day, Nio’s American depositary shares were down about 2.4% from Wednesday’s closing label.

So what

As is mushy any other receive on the earth, the emergence of the aloof omicron variant has rekindled concerns about doable commercial disruptions in China. These concerns were hitting the EV segment on Thursday; Nio’s become appropriate kind one among many EV-associated stocks Trading decrease within the session. 

For the moment no decrease than, the firm is doing effectively. Nio acknowledged the day gone by that it delivered 10,878 vehicles in November, its finest month-to-month total so a ways and higher than double its year-within the past consequence. It become fully the 2d time that its month-to-month transport total had damaged the fundamental 10,000 designate, and it be a brand that Nio (no decrease than for the moment) has its provide chain concerns below attend watch over.

A Nio ES8, an upscale three-row electric SUV.

Nio deliveries hit a aloof excessive in November, with all three units posting solid outcomes. Its colossal ES8 SUV had its finest month in nearly three years. Image source: Nio.

Now what

Must the automaker’s investors be skittish about omicron? Nio thinks not, or no decrease than not but. The firm issued an announcement on Wednesday reassuring followers and investors that its annual Nio Day is heading within the suitable course to happen on Dec. 18 as scheduled.

The firm most frequently makes use of its annual Nio Day gatherings to showcase upcoming aloof merchandise and applied sciences. Analysts question this year’s match to characteristic two upcoming aloof units, including an electrical sedan that will most likely be known as the ET5. Both of the aloof units are believed to be heading within the suitable course to start later in 2022.

These units will most likely be conscious the start of the firm’s aloof flagship, the swish ET7 sedan. Nio is predicted to start transport the ET7 in early 2022.

This text represents the idea of the author, who may maybe disagree with the “legit” recommendation place of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one among our bring together – helps us all assume seriously about investing and make decisions that befriend us develop into smarter, happier, and richer.

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