Why Nio Stock Crashed This Morning
Shares of Chinese electric car manufacturer Nio (NYSE: NIO) crashed 4% in very early trading this morning before beginning to bounce around, first higher, then lower again. A confluence of negative macroeconomic news headlines out of China may be weighing on Nio shares. First and foremost, of course, is the worry that the United States Securities and Exchange Commission (SEC) may begin delisting Chinese shares because of China’s failure to permit its companies to subject themselves to audit inspection by the U.S. Public Company Accounting Oversight Board. On top of that worry, though, last week Chinese property giant China Evergrande Group finally and officially placed itself in default when it missed a final deadline to pay interest due on about $1.2 billion worth of international loans.