- NYSE:NIO fell by 2.24% during Wednesday’s trading session.
- Investors weigh the accuracy of Grizzly Research’s short report.
- Nio is getting help from Beijing as China focuses on the domestic EV sector growth.
NYSE:NIO dipped again on Wednesday, just a day after the company responded to a short report released by Grizzly Research. Shares of NIO sank by a further 2.24% and closed the trading session at $21.86. On the second last day of one of the worst six-month periods in history for US stocks, investors remained unsure of the direction of the economy for the second half of the year. The Dow Jones posted a small gain of 82 basis points, while the S&P 500 and NASDAQ inched lower by 0.07% and 0.03% respectively during the session.
Nio investors continue to weigh the merit and accuracy of the Grizzly Research short report on Wednesday. The allegations within the report include Nio oversupplying its battery swap partner with inventory to artificially inflate sales and revenue figures. For what it is worth, Nio has come out and denied the allegations, citing that the company would provide evidence to the contrary to protect its shareholders. The price action of the stock so far seems to indicate that the market doesn’t think much of the report, and the recent losing days are likely more attributable to downward selling pressure on the EV sector.
NIO stock price
Last week, Beijing indicated that it would be taking ‘extreme measures’ to help support its local domestic EV market. Companies like Nio, XPeng (NYSE:XPEV), and Warren Buffett-backed BYD all received a boost when the Chinese government said it would be extending tax breaks and cash subsidies for local consumers. Despite ongoing supply chain issues and potential COVID-related lockdowns, Beijing seems committed to making its EV sector a priority for the years to come.
Like this article? Help us with some feedback by answering this survey:
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.