- Nio delayed the launch of their new electric SUV.
- This week’s delivery of the company’s flagship luxury vehicle was on schedule.
What’s going on with Nio stock
In March, the stock market was turbulent for Nio (NYSE:NIO), with investors balancing geopolitical risks with near-term catalysts for its rapid development. Shares dropped more than 20% in the first half of the month. However, in the final two weeks of March, Nio stock rose more than 30%. Nevertheless, today’s concerns that sparked early declines have returned to prominence. Nio shares fell 5.05% as of close Thursday, similar to their response in early March.
Why we care
That’s because investors are again concerned about China’s stock delistings on U.S. exchanges. The Securities and Exchange Commission (SEC) announced that they might delist another five Chinese firms if they fail to submit accurate financial audits to U.S. authorities, prompting a slew of sell orders for Nio. It seems that some investors are getting scared out of Chinese names in general.
Nio delayed the release of its ES7 SUV in addition to those jitters. The ES7 will be the third vehicle in Nio’s SUV line, joining the ES6 and ES8, but it will be the first to employ Nio’s NT2.0 technology platform. The ES7 was to debut next month, according to CnEVPost, but it has been pushed back until May 31st due to new COVID-19 restrictions.
On the other hand, Nio has already begun delivering its ET7 luxury vehicle this week. It is also utilizing Nio’s second-generation platform. While broad worries about Chinese stock remain and COVID-19 restrictions disrupting numerous firms in China, Nio continues to develop its product lineup.
For investors prepared to bear the geopolitical risks associated with it, Nio’s share price decline provides an opportunity to invest and concentrate on the company’s operations.