Nio's stock rises again, in wake of rate cut in China and UAW strike against U.S. automakers
Shares of Nio Inc. (NIO) climbed 2.7% in premarket trading Friday, adding the 3.1% bounce in the previous sessions, as a strike impacting some U.S. autoworkers and some and a interest rate cut in China let support for the China-based electric vehicle maker. The stock's rally comes after it slumped 4.7% on Wednesday, after the European Union launched an investigation into China's subsidies to its EV makers. China hit back at the EU's move, calling it "naked protectionism" and saying it could hurt trade relations between the EU and China. Meanwhile, China's central bank cut a short-term policy rate on Friday, in an effort to boost economic growth. What may also be helping Nio's stock, the labor strike impacting General Motors Co. (GM), Ford Motor Co. (F) and Chrysler parent Stellantis N.V. (STLAM.MI) is seen as benefiting competitors with non-union labor forces, such as fellow EV maker Tesla Inc. (TSLA). Tesla's stock rose 0.5% ahead of the open. Elsewhere, shares of fellow China-based EV makers also advanced, with XPeng Inc.'s stock (XPEV) up 1.5% and Li Auto Inc. shares (LI) up 0.3%.
-Tomi Kilgore
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September 15, 2023 06:20 ET (10:20 GMT)
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