- NYSE: NIO fell by 7.7% during Thursday’s trading session.
- Economic data out of China shows a sharp drop in industrial profits in 2022.
- Nio is opening up the flexibility in its battery swap service for customers.
Nio (NIO) erased much of the gains it had made over the past two days as headwinds back in China continue to weigh on the stock. On Thursday, shares of NIO dropped by 7.7% and closed the trading session at a price of $9.98. Despite some positive news regarding the growth of the US economy in the third quarter, stocks were dragged down by the massive sell-off of Meta Platforms (META) following another quarter of missed earnings. Overall, the Dow Jones added 0.6%, the S&P 500 fell by 0.6%, and the Nasdaq dropped lower by 1.6% during the session.
Nio stock price
Chinese ADR stocks were back on the decline on Thursday as a new report showed a significant decline in industrial profits for the first nine months of the year. Adding to this is the unprecedented third term for President Xi, as well as fresh new breakouts of the novel coronavirus in some industrial hubs. It is certainly not a promising short-term outlook for the Chinese economy, and ADR stocks are reflecting this with another negative session on Thursday.
On the bright side, Nio continues to build up its charging and battery swap infrastructure, even as its stock is going through this difficult stretch. The company has now started to allow customers to swap batteries on a daily basis if needed, rather than previously when they could only do it once per month. Earlier this week, Nio also officially announced it is going to be getting into battery manufacturing after establishing a new subsidiary. Macroeconomic headwinds continue to weigh down the stock, but it cannot be denied that Nio is continuing to grow its operations in China and abroad.
NIO 5-minute chart 10/27/22
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