Categories: Economic News

Nio is fading as economic and political problems mount in China

  • NYSE:NIO fell 7.7% during the trading session on Thursday.
  • China’s economic data shows a sharp drop in industrial profits in 2022.
  • Nio is opening up the flexibility of its battery exchange service to customers.

Nio (NIO) erased much of the gains it had made over the past two days as China headwinds continue to weigh on stocks. On Thursday, NIO shares fell 7.7% to close the trading session at a price of $9.98. Despite some positive news on US economic growth in the third quarter, stocks were dragged down by a massive sell-off in Metaplatforms (META) after another quarter of lost earnings. Overall, the Dow Jones added 0.6%, the S&P 500 fell 0.6% and the Nasdaq fell 1.6% during the session.

Nio’s share price

Chinese ADR shares fell again on Thursday as a new report showed a significant decline in industrial profits in the first nine months of the year. Added to this is the unprecedented third term of President Xi, as well as new outbreaks of the new coronavirus in some industrial centers. It’s certainly not a promising short-term outlook for the Chinese economy, and ADR shares reflected that with another negative session on Thursday.

On the bright side, Nio continues to build out its charging and battery-swapping infrastructure, even as its stock is going through a rough patch. The company has now started allowing customers to change batteries daily if needed, instead of previously when they could only do so once a month. Earlier this week, Nio also officially announced that it will enter battery manufacturing after establishing a new subsidiary. Macroeconomic headwinds continue to weigh on the stock, but there’s no denying that Nio continues to grow its operations in China and abroad.

NIO 5 minute chart 10/27/22


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