- 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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.