Nio Inc pulls back in the final trading session of 2021
- NYSE: NIO fell by 2.28% during Friday’s trading session.
- The Chinese government announces further cuts in subsidies for the domestic EV market.
- December deliveries will be in focus for Nio as 2022 kicks off on Monday.
NYSE: NIO failed to ride its momentum from Thursday’s session as the Chinese EV maker closed out the year on a down note. Shares of Nio fell by 2.28% on Friday, and closed the trading week at $31.68. It was a sour end to the year all around as all three major indices fell in the final trading day of 2021. Despite this, all three also posted another year of gains despite ongoing headwinds from the COVID-19 pandemic. The S&P 500 climbed higher by 26.89% in 2021, while the NASDAQ and the Dow Jones added 21.39% and 18.73% respectively. This marked the third consecutive year that all three major indices gained during the 52-week period.
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The Chinese government has announced that it will continue to cut back on subsidies offered to consumers who buy domestically made NEVs or New Energy Vehicles. This includes electric vehicles, as well as hybrids like those made by BYD and Li Auto (NASDAQ: LI). The move was not unexpected, as subsidies were reduced in 2021 as well. All eyes will be focussed on 2023 when the government suggests that it will cut subsidies all together, which could be a benefit to foreign EV makers like Tesla (NASDAQ: TSLA) and Volskwagen.
NIO stock news
As the new year kicks off on Monday, the focus for the electric vehicle industry will be on December delivery numbers. Nio, Li Auto, and XPeng (NYSE: XPEV) will likely report on Monday, while Warren Buffett-backed BYD usually reports its numbers later in the week. Tesla will also be reporting its fourth quarter delivery figures, so the first week of 2022 will be a key one in the sector.
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