What happened
Shares of Chinese electric vehicle (EV) maker Nio (NIO +7.09%) have been getting hammered this week, with the stock down more than 11.5% in the last five days. The downtrend continued today, as Nio shares sank as much as another 3.4% before rebounding slightly. As of 3:10 p.m. ET, Nio stock was down 2.4%.
So what
Nio investors have been troubled recently by fears related to Chinese government regulators as well as growing global competition, and even company-specific items. The company's vehicle delivery results were hampered in October due to production delays related to a retooling of its manufacturing lines for new models, as well as ongoing industry supply chain issues. While that negative factor was largely reversed in November with record deliveries, other concerns have remained.
Nio ES8 SUVs being delivered in Norway. Image source: Nio.
Now what
There are growing uncertainties tied to U.S.-traded Chinese stocks from both countries' regulatory authorities. Fears of the potential delisting of shares in the U.S. continue to swirl, and growth investors particularly don't like that kind of uncertainty. Additionally, other EV start-ups are growing, and traditional automakers are detailing plans for their EV strategies. Just this week, for example, Toyota Motor announced it plans to invest $35 billion this decade for its planned lineup of 30 EVs.
But Nio will hope to reverse recent investor sentiment this weekend at its Nio Day event. After beginning sales in Norway earlier this year, this year's theme is "Hello World." The company's strategy is to build a community of users similar to what it has in China. In addition to sales infrastructure, Nio is establishing its Nio House community centers in Norway already. For its Nio Day event, the company has even enlisted popular Norwegian DJ Alan Walker to collaborate on a new song called "Hello World" that will debut at the presentation.
For now, investors continue to focus on the risks and uncertainties. With Nio Day less than 48 hours away, the EV company hopes to change the narrative for investors going into next week and beyond.
