- NYSE:NIO fell by 1.83% during Tuesday’s trading session.
- Nio investors are certainly spooked by Li Auto’s recent earnings report.
- The Chinese economy is slowing and Beijing just lowered interest rates.
NYSE:NIO dipped lower on Tuesday as continued weakness in the Chinese economy is weighing on the ADR sectors. Shares of Nio fell lower by 1.83% and closed the trading session at $20.91. Stocks were mostly mixed on Tuesday as meme stock mania once again dominated the financial news headlines on Wall Street. Stocks like FuboTV (NYSE:FUBO) and Bed Bath and Beyond (NASDAQ:BBBY) continued to squeeze higher as short sellers closed out their positions. Overall, the Dow Jones gained 239 basis points after strong earnings and guidance from WalMart (NYSE:WMT) and Home Depot (NYSE:HD). The S&P 500 added 0.19% while the NASDAQ posted a slight loss of 0.19% during the session.
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Nio investors were clearly still feeling the effects of a disappointing earnings report from rival Li Auto (NASDAQ:LI). On Monday, Li announced a 63% year over year rise in deliveries for the quarter, but projected deliveries for the third quarter came in lower than expected. Should Nio investors be this worried? Perhaps in the short-term while China gets back on its feet following COVID-lockdowns. Over the long-term Nio has a much clearer global expansion plan than Li Auto, and investors should be focussing on that instead.
NIO stock price
It seems as though the Chinese economy might be in worse shape than first realized. On Monday, Beijing cut interest rates for the country as July economic data showed that the economy regressed last month, most likely due to the aforementioned COVID-lockdowns. While this should only be a temporary headwind, the fact is it will continue to weigh on Chinese ADR stocks until improvement is seen.
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