- 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.
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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.
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