The Motley Fool fool.com 05 Aug, 2022 18:45 am

Why Nio Shares Dropped Friday

Why Nio Shares Dropped Friday
Escalating tensions between China and the U.S. aren't a positive development.

Chinese EV makers like Nio (NIO -3.That might not directly impact Nio and other Chinese EV makers in the short term, but its existing Chinese factory is a joint venture with a state-owned partner.House Speaker Nancy Pelosi to Taiwan has angered China's leadership, and the fallout is starting to have some far-reaching implications.In the wake of Pelosi's Taiwan visit amid strong condemnation by the Chinese government, its leaders declared today that it was ceasing all discussions with the U.

Nio has been growing its business in Western nations with sales beginning in Europe last year in Norway, and it plans to expand to other European nations throughout 2022.Nio's battery-swap stations allow customers to reduce the up-front cost of its electric vehicles (EVs) and effectively pay a subscription for the batteries.

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