- NYSE: NIO fell by 2.28% during Friday’s trading session.
- The Chinese government announces further cuts in subsidies for the domestic EV market.
- December deliveries will be in focus for Nio as 2022 kicks off on Monday.
NYSE: NIO failed to ride its momentum from Thursday’s session as the Chinese EV maker closed out the year on a down note. Shares of Nio fell by 2.28% on Friday, and closed the trading week at $31.68. It was a sour end to the year all around as all three major indices fell in the final trading day of 2021. Despite this, all three also posted another year of gains despite ongoing headwinds from the COVID-19 pandemic. The S&P 500 climbed higher by 26.89% in 2021, while the NASDAQ and the Dow Jones added 21.39% and 18.73% respectively. This marked the third consecutive year that all three major indices gained during the 52-week period.
Stay up to speed with hot stocks' news!
The Chinese government has announced that it will continue to cut back on subsidies offered to consumers who buy domestically made NEVs or New Energy Vehicles. This includes electric vehicles, as well as hybrids like those made by BYD and Li Auto (NASDAQ: LI). The move was not unexpected, as subsidies were reduced in 2021 as well. All eyes will be focussed on 2023 when the government suggests that it will cut subsidies all together, which could be a benefit to foreign EV makers like Tesla (NASDAQ: TSLA) and Volskwagen.
NIO stock news
As the new year kicks off on Monday, the focus for the electric vehicle industry will be on December delivery numbers. Nio, Li Auto, and XPeng (NYSE: XPEV) will likely report on Monday, while Warren Buffett-backed BYD usually reports its numbers later in the week. Tesla will also be reporting its fourth quarter delivery figures, so the first week of 2022 will be a key one in the sector.
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.
Recommended content
Editors’ Picks
EUR/USD retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.