Nio's stock touches 52-week low after Chinese EV maker cuts sales estimates

MW Nio's stock touches 52-week low after Chinese EV maker cuts sales estimates

By Claudia Assis

Nio's ADRs head toward lowest close in nearly four years

U.S.-listed shares of Nio Inc. on Wednesday hovered around a 52-week low after the Chinese electric-vehicle maker cut its current-quarter sales estimates.

In a terse filing with U.S. regulators, Nio $(NIO)$ said it had "prudently" adjusted the outlook to call for sales of about 30,000 EVs in the first quarter, compared with a previous expectation of 31,000 to 33,000 EVs.

The shares were trading as low as $4.45 Wednesday morning. A close at current levels would be the lowest since June 1, 2020, when they closed at $4.26. The shares were also on pace for their largest one-day percentage decline since March 19, when they fell more than 6%.

Nio's American depositary receipts got a downgrade earlier this week from analysts at Mizuho, who also downgraded EV makers Tesla Inc. $(TSLA)$ and Rivian Automotive Inc. $(RIVN)$.

Concerns have swirled for months about a slowdown in EV demand due to higher prices and increased competition.

Chinese EV maker Li Auto Inc. $(LI)$ last week cut its own first-quarter delivery outlook, citing fewer orders. Li said it expects to deliver between 76,000 and 78,000 EVs during the quarter, down from previous guidance of between 100,000 and 103,000.

Nio's ADRs are down 93% from an all-time closing record high of $62.84 on February 9, 2021. So far this year, the shares have fallen 50%, contrasting with an advance of about 9% for the S&P 500 index SPX.

-Claudia Assis

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March 27, 2024 11:26 ET (15:26 GMT)

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