Nio (NYSE:NIO) stock isn’t doing so hot on Friday. Investors can look to rival electric vehicle (EV) maker Tesla (NASDAQ:TSLA) to understand why.
The big news that NIO stock traders need to know today is Tesla cutting prices in China. Specifically, the EV leader is reducing the prices of its Model Y and Model 3 vehicles in the country. This has the models starting at around $37,000 and $32,700, respectively.
Investors will note that these new prices are massive discounts compared to what the EVs go for stateside. These price reductions come after Tesla saw a slump in EV deliveries in China over the last year.
That makes sense, as many companies in the EV market didn’t do well in 2022. This was partially due to the ongoing effects of the Covid-19 pandemic, rising inflation and worries about a recession being on the horizon.
What This Means for NIO Stock
If top EV company Tesla isn’t doing well, it doesn’t look good for its rivals, either. That realization is hitting the morale of traders today, as it could mean trouble for NIO stock. Lower prices from Tesla could force Nio to follow suit if it wants to remain competitive.
Investors aren’t reacting well to today’s news. As of Friday afternoon, NIO stock is down 7% with nearly 50 million shares having changed hands. The company’s daily average trading volume is about 61 million shares.
There’s more recent stock market news investors need to know about below!
We’ve got all of the latest stock market coverage traders will want to read about on Friday! A few examples include why shares of AMC Entertainment (NYSE:AMC), Compass (NYSE:COMP) and DCP Midstream (NYSE:DCP) are in the news. You can read all about that at the following links!
More Friday Stock Market News
- CEO Adam Aron Is the Largest ‘Retail Shareholder’ in AMC Stock
- Compass Layoffs 2023: What to Know About the Latest COMP Job Cuts
- DCP Stock Pops on Phillips 66 Acquisition News
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.