NIO Stock Forecast: Nio Inc tanks after situation in Ukraine intensifies

NYSE:NIO has certainly found itself at the middle of a political nightmare as the ongoing tensions in Ukraine intensify. Shares of Nio tumbled by 6.20% on Tuesday and closed the tumultuous trading session at $21.77. It was another bearish day for the markets as all three indices extended their recent skids. With reports that Russia will imminently march on Ukraine, the US markets tanked in preparation of economic sanctions that could see the price of commodities rise. The NASDAQ dropped by 1.23%, the S&P 500 fell by 1.01%, and the Dow Jones lost 482 basis points during the session.

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China and Chinese-based companies find themselves in an awkward position after aligning themselves closer to Russian President Vladamir Putin earlier this year. Nio could receive some backlash, particularly as a company that has its production facility in the hands of a state-run organization. The Chinese government also owns a stake in Nio, which could prove to be difficult for the company as it moves forward with global expansion. Nio is already planning to move to several other European markets this year and has plans to launch in the US in the near future. Depending on how China reacts to Russia’s invasion, we could potentially see a trickle-down effect for Chinese companies.

NIO stock price

Earlier this week a report surfaced from Chinese social media platform, Weibo, that Nio is in the initial stages of producing its own smartphone. When the company was asked about it on Tuesday, Nio refused to comment, stating that any updates will be released through the media as an official company announcement.

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