Nio (NYSE:NIO)
Nio (NYSE:NIO) is trying to grow its business outside China. However, investors should remember that China is the company’s primary market. That’s a factor in today’s decline in Nio stock price. Nio stock was down 5.2% earlier today and 2.2% at 11:23 a.m. ET.
What’s the Reason?
Nio (NYSE:NIO) has been planning its further expansion across Europe and shared its plans with the public last week. 120 of their power switch charging stations will be installed by the end of next year, and they will sell three of their smart electric cars in Germany, the Netherlands, Denmark, and Sweden. It may also contain a new, unnamed mass-market brand.
However, on the day, Nio stock has been trading down due to broader economic news. In an updated version of its Global Financial Stability Report, the International Monetary Fund (IMF) warned of a “disorderly tightening in financial conditions” on global markets due to inflationary pressures. This is in line with a Wall Street Journal article that said Chinese consumers spent less money on the weeklong National Day vacation in the first week of October than they did the previous year.
What Should You Do Now?
More than 31,600 electric cars were sent by Nio (NYSE:NIO) in the third quarter, marking the company’s largest vehicle delivery period ever. That’s an annual growth rate of 29%, with the bulk still going to the country’s domestic market. Nio plans to focus on China’s expanding market while expanding its presence in the European market.
Initially, Europe will get Nio’s two sedan versions and one SUV. According to Automotive News Europe, Nio stock president and co-founder Lihong Qin indicated at the Berlin event last week that a new mass-market brand would also be available in Europe starting in 2024.
But if it wants to turn a profit, the corporation has to keep expanding in China. Nio stock investors in growth aren’t happy to hear that consumer spending is slowing there or that the International Monetary Fund has issued a warning about the global economy.
Featured Image- Megapixl @ RobertWei
Author Shariq Khan 
