NIO Stock News: Nio Inc sinks as GM earnings miss causes EV stock sell off

NYSE: NIO fell by 1.50% during Tuesday’s trading session.
General Motors missed on its second quarter earnings report.
BYD enters the Japanese electric car market with three models.

Stocks Reporter FXStreet

NYSE: NIO dipped lower on Tuesday as the EV sector saw an earnings miss by a legacy automaker. Shares of Nio fell by 1.50% and closed the trading session at $19.04. Stocks retreated further on Tuesday as investors weighed the impending rate hike from the Fed and big tech earnings after the markets closed. All three major indices closed in the red, with sentiment being weighed down by lowered guidance from retail giant WalMart (NYSE: WMT). Overall, the Dow Jones fell by 228 basis points, the S&P 500 dropped by 1.15%, and the NASDAQ tumbled by 1.87% during the session.

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The major automotive news for the day was that General Motors (NYSE: GM) missed for the quarter on both the top and bottom line. While one earnings miss isn’t usually enough to tank the sector, GM stated that it was unable to deliver its 90,000 vehicle target due to ongoing supply chain issues. These have been well documented as being industry-wide issues, so it’s not surprising that other EV stocks sold off on the news. Along with Nio, stocks like Tesla (NASDAQ: TSLA), Rivian (NASDAQ: RIVN), and Lucid (NASDAQ: LCID) were all trading well below water.

NIO stock forecast

Nio’s domestic rival BYD has officially declared that it is entering the Japanese electric vehicle market with three models. Sales of the Seal, Dolphin, and the Atto 3 are all expected to launch in 2023. It will be interesting to see how BYD can do in a market that has been surprisingly slow to adopt the electrification of the automotive industry.

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Stocks Reporter

FXStreet

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