NIO Inc ADR (NIO)

NIO Inc ADR (NIO) stock fell by 7.85% following the release of its Full Year 2023 earnings, which showed a wider net loss than in the previous year.

• Key Financial Results: The company reported a revenue of CN¥55.6b, up 13% from FY 2022. However, net loss was CN¥21.1b, a 45% increase from FY 2022, which means loss per share was CN¥12.44, deteriorating from CN¥8.89 loss in FY 2022.
• Earnings Per Share (EPS) Miss: While revenue was in line with analyst estimates, EPS missed expectations by 17%. The Auto Manufacturers segment contributed CN¥55.6b in revenue over the last 12 months, with cost of sales amounting to 95% of total revenue, impacting earnings. The largest operating expense was Research & Development (R&D) costs, totaling CN¥13.2b (51% of total expenses). Non-operating gains of CN¥1.51b partially offset the losses.
• Market Reaction and Investor Sentiment: The disappointing earnings report led to a significant drop in NIO's stock price. Investors are likely concerned about the company's widening losses and the impact of high costs on its financial performance. NIO will need to address these challenges to regain investor confidence and stabilize its stock price.

Nio Inc - ADR Stock (NIO) dropped by 6.80% from $7.94 to $7.40 in the trading on Thursday November 16, 2023. The reasons why NIO stock down today include:

• Negative news following the meeting between US President Joe Biden and Chinese President Xi Jinping: A highly anticipated meeting between the leaders yielded no substantial economic progress. While the two leaders agreed to foster closer cooperation in certain areas, no headway was made on the tariffs imposed by each country, particularly those affecting electric vehicle battery components and semiconductors. It casts an uncertain future on the electric vehicle (EV) company’s ability to expand beyond China.
• Warning from Alibaba: NIO's stock price faces additional pressure following Alibaba's announcement that it is abandoning plans to spin off its cloud business. The Chinese e-commerce giant attributed this decision to the uncertainty created by the U.S. ban on certain semiconductors, which are crucial components for cloud computing infrastructure.

Shares of NIO (NIO) dropped by 5.68% from $7.92 to $7.47 in the trading on Thursday, Novemeber 9, 2023. The reason why NIO down is due to a broader trend affecting leading electric vehicle (EV) stocks, including Tesla (TSLA), Rivian Automotive (RIVN), and Lucid Motors (LCID). These EV companies saw significant decreases in their stock prices, with Tesla down 5.46%, Rivian down 9.82%, and Lucid Motors down 4.94% on the same day.

The primary reason behind this collective decline in EV stocks was a shift in sentiment among analysts, who turned bearish on the EV sector. This change in sentiment was prompted by lackluster earnings results from these companies and concerns about the impact of higher interest rates. The higher interest rates were seen as negatively affecting the relatively high valuations of EV stocks, making electric vehicles less attractive to consumers due to increased borrowing costs.

Nio Inc - ADR (NIO) dropped by 7.27% from $8.53 to $7.91 in the trading on Wednesday October 18, 2023. The reasons why NIO stock down today include:

• Strong competition with BYD: NIO stock appears to have faced selling pressure due to strong sales numbers from China-based EV competitors, BYD Co Ltd. Nio delivered 15,641 vehicles in September; 55,432 for the third quarter and cumulative deliveries climbed to 399,549. But BYD delivered more than 286,000 vehicles just last month and is growing at about the same rate as Nio.
• Dealer network in Europe: Nio is looking to build a dealer network in Europe to augment its direct sales there. As China’s EV market has become saturated, the company’s car makers are increasingly turning to Europe for growth. It’s a sign of weakness. Nio’s sales performance in Europe is described as “underwhelming” by the company’s president.

Shares of NIO (NIO) dropped by 5.91% from $8.93 to $8.44 in the trading on Thursday, October 12, 2023. The reason why NIO stock down include:

• Higher-than-expected CPI: On October 12, a report revealed that September's Consumer Price Index (CPI) inflation came in at 3.7%, surpassing expectations of 3.6%. Core CPI inflation stood at 4.1%, in line with expectations. This higher inflation raised concerns among investors about a potential interest rate hike by the Federal Reserve, leading to a broader decline in the stock market, including NIO stock.
• Middle East war: The conflict between Israel and the Palestinian militant group Hamas in the Middle East contributed to an increase in oil prices. Rising oil prices can negatively impact electric vehicle (EV) stocks like NIO, as they may face higher production and operating costs, which can weigh on their profitability and stock prices.

Shares of Nio, Inc. (NIO) shed 17.07% to $8.55 on the Tuesday trading in reaction to its $1 billion convertible note offering.

https://www.fool.com/investing/2023/09/19/why-ev-stocks-like-rivian-and-nikola-got-thrown-in/

NIO stock declined 7.22% today. Currently, investors are prioritizing the broader Chinese economy over the internal dynamics of the electric vehicle (EV) manufacturing sector. In the Chinese stock market, observers are noting share declines among major players due to the struggling real estate market.

https://investorplace.com/2023/08/why-are-chinese-stocks-baba-jd-pdd-nio-down-today/