Nio Stock Continues to Slide: What's Going On?

NIO Inc NIO shares are trading lower Wednesday, adding to heavy losses for the week. Here's a look at what's going on.

What To Know: Nio shares closed Monday down nearly 3% and Tuesday down approximately 5.5%. The stock appears to be facing continued selling pressure after Tesla Inc TSLA slashed prices of its Model Y vehicle by more than $1,900 in China earlier this week. The EV company also announced a limited-time insurance subsidy for some of its Model 3s. 

Just days later, Tesla lowered prices on its current inventory of Model S and Model X vehicles in China by as much as $9,600. 

Lower Tesla prices are increasing 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 mount 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.

Check This Out: China's Central Bank Takes Surprising Step As Economy Falters: Why Americans Should Care

Nio announced on Wednesday that it will report its second-quarter financial results before the market opens on Aug. 29. Nio provides production and delivery numbers on a monthly basis, which have shown a steady trend higher in the second quarter. 

Nio said it delivered 20,462 vehicles in July, 10,707 vehicles in June and 6,155 vehicles in May. The company noted that deliveries of its new ES6 vehicle have been "growing solidly" since its debut in May.

NIO Price Action: Nio shares are down more than 12% over the last five trading sessions. The stock is still up approximately 21% year-to-date. 

Nio shares were down 5.49% at $11.18 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Nio.