Nio (NYSE:NIO) stock is falling on Wednesday and there are a couple of reasons why the electric vehicle (EV) company’s shares aren’t doing so hot.
First off, investors will note that EV rival Xpeng (NYSE:XPEV) released its earnings report for the first quarter of 2023 today. The company’s earnings per share of -2.57 yuan and revenue of 4.03 billion yuan missed Wall Street’s estimates of -2.31 yuan per share and $4.99 billion yuan.
It makes sense that NIO stock would fall alongside a weak earnings report from one of its rivals. That’s due to companies in the same sector often seeing their shares move in sympathy with each other.
XPEV Drags Nio Stock Down
Also not helping matters is XPEV expecting EV deliveries between 21,000 and 22,000 for the second quarter of the year. That represents a roughly 36.1% to 39% decrease in deliveries year-over-year (YOY).
To go along with that, Xpeng is looking for revenue in Q2 2023 to range from 4.5 billion yuan and 4.7 billion yuan. That’s another blow to both XPEV and NIO stock as it represents a 36.8% and 39.5% drop YOY.
All of this news has both NIO stock and XPEV stock falling today with heavy trading. In the case of NIO, shares are down 10.8%. Meanwhile, XPEV stock is down 11.5% as of Wednesday morning.
There’s even more stock market news traders will want to know about below!
We’ve got all of the biggest stock market stories traders need to know about on Wednesday! Among that is what’s moving shares of Bed Bath & Beyond (OTCMKTS:BBBYQ) and Smart for Life (NASDAQ:SMFL) stock, as well as more details on XPEV’s earnings. All of that is ready to go below!
More Wednesday Stock Market News
- Dear BBBYQ Stock Fans, Mark Your Calendars for June 1
- SMFL Stock Alert: Smart for Life Launches Sports Illustrated Protein Bars
- XPEV Stock Alert: Why Xpeng Is Falling 10% Today
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.