Why Nio Stock Is Trading Lower Today
Shares of Chinese electric-vehicle (EV) maker Nio (NYSE: NIO) were trading lower on Thursday, on rising COVID-19 concerns a day after it announced its best monthly sales result to date.
As of 11 a.m. ET today, Nio's American depositary shares were down about 2.4% from Wednesday's closing price.
As is true elsewhere in the world, the emergence of the new omicron variant has rekindled concerns about potential business disruptions in China. Those concerns were hitting the EV segment on Thursday; Nio's was just one of many EV-related stocks trading lower in the session.
For the moment at least, the company is doing well. Nio said yesterday that it delivered 10,878 vehicles in November , its best monthly total to date and more than double its year-ago result. It was only the second time that its monthly delivery total had broken the important 10,000 mark, and it's a sign that Nio (at least for the moment) has its supply chain issues under control.
Should the automaker's investors be worried about omicron? Nio thinks not, or at least not yet. The company issued a statement on Wednesday reassuring fans and investors that its annual Nio Day is on track to happen on Dec. 18 as scheduled.
The company generally uses its annual Nio Day gatherings to showcase upcoming new products and technologies. Analysts expect this year's event to feature two upcoming new models, including an electric sedan that may be called the ET5. Both of the new models are believed to be on track to launch later in 2022.
Those models will follow the launch of the company's new flagship, the sleek ET7 sedan . Nio is expected to begin shipping the ET7 in early 2022.
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