NIO Inc. (NYSE: NIO) stock is rising in the pre-market trading Monday after tumbling 8% on Friday. NIO stock plummeted on Friday after Ohio Senator Sherrod Brown proposed banning Chinese-made EV imports to the US.
Senator Brown penned a letter to President Biden on Thursday, pressing for a prohibition on Chinese EV sales in the United States.
In the letter, Senator Brown wrote,
“Chinese EVs, highly subsidized by the Chinese government, could decimate our domestic automakers, harm American workers – many of whom are represented by the United Autoworkers (UAW) – and give China access to sensitive personal data.”
This call for a ban on Chinese EVs comes in the wake of Treasury Secretary Janet Yellen’s recent trip to China, where she engaged in discussions with Chinese officials regarding government subsidies and trade practices. These discussions are reported to be ongoing and intensive.
Earlier this month, Barclays downgraded NIO stock to Underweight from Equal Weight, while also cutting the price target to $4 from $5 per share.
NIO announced its delivery results for March and the first quarter of 2024 shortly after the downgrade. In March 2024, NIO delivered 11,866 vehicles, marking a 14.3% increase year-over-year. The deliveries included 6,737 premium smart electric SUVs and 5,129 premium smart electric sedans. In the first quarter of 2024, NIO delivered 30,053 vehicles. As of March 31, 2024, cumulative deliveries of NIO vehicles came in at 479,647.
NIO (NYSE: NIO) Stock Performance
NIO stock plunged 7.85% to close at $4.11 on Friday. The traders had exchanged hands with 74,417,373 (74.41 million) shares compared to the average daily trading volume of 56.84 million.
