NIO - Why did Nio stock sink today? Xpeng's earnings rattled the sector

2023-05-24 15:24:30 ET

Nio ( NYSE: NIO ) slumped 9.66% in later afternoon trading on Wednesday after rival Xpeng ( XPEV ) reported a larger Q1 loss than anticipated. Volume on Nio ( NIO ) was above normal activity at over 75M shares.

During Xpeng's ( XPEV ) earnings conference call ( transcript ), execs said that both  year-over-year and quarter-over-quarter gross margin declines were mainly tied to an increased level of sales promotions and the expiration of new NH vehicle subsidies

Earlier on Wednesday, Nio ( NIO ) officially launched the new ES6 electric SUV. The Chinese EV maker revealed the new ES6 will be powered by a 150 kW front and 210 kW rear motor and will come with two battery options, with range potential of either 304 miles or 388 miles.

Shares of Nio ( NIO ) are now down just over 3% over the last six weeks after a period of bouncy trading. Short interest on Nio ( NIO ) stands at 8.15% of total float.

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