Shares of Chinese-language electric vehicle maker NIO (NYSE: NIO) were long and short lower on Friday morning, after a drop in analyst rating from rival Tesla (NASDAQ: TSLA) sparked a early sale of shares of electric cars.
As of 10:30 a.m. EDT, NIO’s U.S. custodian shares were down about 5.2% from Thursday’s closing price.
Friday’s sale was not triggered by dangerous news around NIO. In fact, there was great news: NIO CEO William Bin Li confirmed in an interview with Chinese-language business news publication Cailienshe that NIO’s loss narrowed in the second quarter and that its gross margin has become constructive, after a consequence on the expected gross sales.
It wasn’t a huge shock, considering the big consequence of gross sales and the various hints we got from the company regarding their earnings report the following month. This is the kind of report that could have caused the stock to rise on a typical day.
NIO’s next new model would be the ET7 sports sedan. Deliveries are expected to start early next year. Image supply: NIO.
However, NIO shares were taken in a larger wave on Friday morning as traders bought shares in NIO, Tesla and various electric vehicle makers following Tesla downgrade after earnings and problems. crescents regarding the unraveling of US-China relations.
NIO stocks have had a tremendous run over the past two months; the last setbacks are possible nothing more than a correction. The business is arguably healthier than ever, with gross sales on the rise, cash in the bank, and a brand new manufacturing unit underway.
Auto traders may have the opportunity to listen to more information from NIO’s management group when the company announces its second quarter results next month.