AUTO - Exactly Why Nio Stock Fell Today
Nio Stock ( NYSE:NIO )
Since the announcement of the most recent employment figures in the United States, shares of Chinese electric car manufacturer Nio ( NYSE:NIO ) have slowed. Statistics from the Bureau of Labor and Statistics show 263,000 new jobs were created in September.
Notwithstanding, this has investors in Nio ( NYSE:NIO ) fretting that a strong job market would prompt the Federal Reserve to maintain its policy of gradually increasing interest rates. An analyst lowered their price target for Nio stock yesterday, which may also be dragging on the stock today.
At 1:54 p.m. ET, Nio stock had dropped 7.1%.
What’s the Reason?
According to TheFly.com, on Thursday, Mizuho analyst Vijay Rakesh decreased his price estimate for Nio stock from $42 to $40, citing supply chain concerns as “remaining a difficulty” for all EV manufacturers.
Rakesh reduced his price estimate for Nio stock but still recommends buying the company’s shares since he expects EV demand to remain high.
But the fact that the U.S. job market is quite robust is perhaps causing Nio stockholders the most are right now.
Even while a healthy job market is excellent news for those searching for employment and a sign of a thriving economy, some investors are concerned that the Federal Reserve will use this as evidence that it can keep hiking interest rates without significantly harming the U.S. economy. Some investors are worried that the Federal Reserve’s continued aggressive interest rate rises would cause a severe recession in t...
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