What's Going On With Nio Stock?

NIO Inc NIO shares are trading lower Tuesday, adding to losses of nearly 3% on Monday. EV makers in China have faced selling pressure this week after competitor Tesla Inc TSLA lowered prices in the country. Weak data out of China also appears to be pressuring the stock.

What To Know: Tesla slashed prices of its Model Y vehicle by more than $1,900 in China this week. The company also announced a limited-time insurance subsidy for some of its Model 3s. 

Lower Tesla prices are putting pressure on competing EV makers to stay competitive on cost. The cost cuts could also be due to weakening economic conditions causing slowing demand.

A range of new data out of China on Tuesday showed that pressure on the economy continues to increase in several areas. China's central bank issued multiple interest rate cuts in response to the weakness.

Data from the National Bureau of Statistics showed retail sales, industrial output and broader investments were all growing slower than expected, per Reuters. 

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According to a tweet from National Business Daily, Nio Hardware vice president Bai Jian also recently said that some of the company's key self-developed chips will be mass produced in the next one to two years. 

NIO Price Action: Nio shares are down more than 11% over the last five trading sessions.

The stock was down 1.72% at $12.31 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Nio.