uploads///car _

Why NIO Stock Fell Nearly 9% after ES6 Launch Event

By

Updated

NIO

NIO (NIO), the Chinese electric car company, held its NIO Day 2018 on Saturday, December 15 in Shanghai. On this occasion, the company also launched its second mass-market electric car, the ES6. However, NIO investors don’t seem to be pleased with the new car, as its stock traded on a negative note on Monday after the car launch.

Article continues below advertisement

NIO stock fell

On December 17, NIO stock fell about 8.7% to $7.03. Since its listing on the New York Stock Exchange in September 2018, NIO stock has been highly volatile. Right after its NYSE debut, it posted a high of $13.80 on September 14, but these gains didn’t last for long, and the stock fell back to price levels of below $6.0 in October. After losing about 15.5% in October, it recovered sharply by 30.7% in November. This high volatility makes NIO stock unattractive to conservative investors, as its high volatility also means high risk for investors.

NIO’s recent stock drop might also partly be a result of the intensifying sell-off in the US equities market. As of December 17, NIO has already fallen by 8.8% month-to-date. On a quarter-to-date basis, it was trading with 0.7% minor gains. By comparison, its US peer (XLY), Tesla (TSLA), was able to maintain impressive 31.6% quarter-to-date gains. Other Chinese companies Alibaba (BABA) and Baidu (BIDU) lost 12.6% and 25.7% quarter-to-date, respectively, while Uxin (UXIN) has seen 23.7% gains.

In the next part, we’ll look at some key highlights of NIO’s ES6 car model.

Advertisement

More From Market Realist