Shares of Chinese electric-vehicle maker NIO (NYSE:NIO) were down sharply on Thursday, as the company's report of a strong August delivery total wasn't enough to offset a broad sell-off of electric-vehicle stocks.
As of 11:45 a.m. EDT today, NIO's American depositary shares were down about 5.1% from Wednesday's closing price.
Thursday morning began with good news from NIO: Its deliveries in August had more than doubled from a year ago, and improvements to its production line has given it the capacity to support additional sales growth starting this month.
That was good news. Also good news: NIO said late on Wednesday that it had successfully completed its secondary stock offering, raising about $1.7 billion to fund future growth and to buy back some of the equity it gave up in a bailout deal earlier this year.
But as it turned out, that double hit of good news wasn't enough to drive the stock higher on Thursday. A post-split sell-off of Tesla (NASDAQ:TSLA) broadened into a wider sell-off of technology stocks, and NIO's was one of several electric-vehicle stocks hit hard by the selling wave.
Even if its stock price tumbles further amid this sell-off, NIO appears to be in a good spot right now. Its secondary was completed at a good price ($17 per share), and the company now has plenty of cash in the bank as it gears up to begin deliveries of its sporty new EC6 crossover later this month. So auto investors taking a long-term view need not worry too much about today's sell-off.