What happened 

Shares of the Chinese electric vehicle company Nio (NIO 0.52%) hit the brakes today following the release of the latest U.S. jobs data. The Bureau of Labor Statistics said 263,000 jobs were added in September, indicating a strong labor market.  

That has Nio investors worried, though, as a robust labor market could encourage the Federal Reserve to continue hiking interest rates. Additionally, Nio received a price-target cut by an analyst yesterday, which could be weighing on the stock as well.

As of 1:54 p.m. ET, shares were down 7.1%.

So what 

Mizuho analyst Vijay Rakesh lowered his price target for Nio's stock from $42 to $40 on Thursday, noting that supply chain issues "remain a challenge" for all EV makers, according to TheFly.com. 

A blue car inside of a factory.

Image source: Nio.

While Rakesh cut his price target for Nio's stock, he still thinks there will be strong demand for EVs and maintained his buy rating. 

But Nio shareholders are likely more upset today with the fact that the U.S. labor market appears very healthy. 

A strong labor market is good for people looking for work and is a sign of a good economy, but investors fear that the Fed will view it as proof that it can keep raising rates without damaging the U.S. economy too much. Continued aggressive interest rate hikes have some investors concerned that the Federal Reserve could push the U.S. into a significant recession. 

And even though Nio is based in China, its shareholders are likely worried that any slowdown in the U.S. economy could be felt in other countries as well.

Now what 

While the broader market rallied a bit earlier this week, Nio's shares haven't held onto any of the gains. The stock is down 13% over the past five days, contributing to Nio's 59% drop over the past 12 months. 

The Federal Reserve is likely to continue its interest rate increases as it attempts to push down inflation, which means that Nio investors will probably have to stomach more volatility from the company's stock price in the near term.