On Monday, Nio Inc. stocks tumbled amid China’s booming electric vehicle industry.
Accordingly, the automobile manufacturer declined 1.22% or 0.47 points to $37.98 per share.
Nio specializes in designing and developing electric vehicles.
In addition, it has a market capitalization of $62.24 billion with a revenue of $8.45 billion.
Moreover, the shares of Nio already fell 28.00% since the end of June.
Then, Nio’s US-listed shares plummeted 22.00% this year. Last 2020, it increased more than 1000.00% after receiving a lifeline investment of $1.00 billion.
However, the electric vehicle company saw a series of implications this year.
Last month, Nio announced that the global shortage of semiconductors could significantly affect production at the end of 2021.
Furthermore, the shortage might not reach the goal of manufacturing 750,000 EV units for the second quarter.
Consequently, the disruptions in the supply chain troubled the finances of the company.
As a result, Nio put $2.00 billion shares on sale to support its balance sheet.
Meanwhile, its rival Xpeng edged down 2.35% or 3.60 points to $149.90 per share.
The shares of the major electric car manufacturer plunged as the government indicated possible sector consolidation.
Moreover, the reinforcement is in line with the recent boost in China’s electric vehicle industry.
Chinese businesses that include energy vehicles edged up by 81,000 this year.
Remarkably, 321,000 companies entered the industry in mid-August.
This year, the hike came after 78,600 firms joined the EV industry during the onset of the pandemic.
As the industry grew more extensively, the Ministry of Industry and Information Technology hinted at trimming in the sector.
Asian Stocks Mixed as Chinese EV Shares Fell
Meanwhile, Asian stocks mixed as Chinese EV shares plunged on Monday trading.
In China, the Shenzhen Component index tumbled 0.45% or 66.04 points to $14,705.83 per share.
Then, the Shanghai Composite index inched up 0.33% or 12.26 points to $3,715.37 per share.
In Hong Kong, the Hang Seng index fell 1.50% or 392.10 points to $25,813.81 per share.
On the Tokyo Stock Exchange, the Nikkei 225 index jumped 0.22% or 65.53 points to $30,447.37 per share.
Likewise, the broader TOPIX index climbed 0.29% or 6.06 points to $2,097.71 per share.
Similarly, South Korea’s KOSPI index rose 0.07% or 2.10 points to $3,127.86 per share.