- NYSE:NIO fell by 1.47% during Wednesday’s trading session.
- The Chinese government is changing its dual credit policy for EV makers.
- Tesla CEO Elon Musk sells another $1 billion in TSLA shares.
NYSE:NIO cooled off on Wednesday following a red-hot start to the week. Shares of Nio dipped by 1.47% on Wednesday and closed the trading session at $41.42. The move lower for Nio came on a day where growth stocks rebounded following a two-day sell-off. The NASDAQ and S&P 500 managed moderate gains, while the Dow Jones fell slightly during the session. Electric vehicle stocks were mixed during the day, as domestic rival XPeng (NYSE:XPEV) and newly public Rivian (NASDAQ:RIVN) dipped alongside Nio. Meanwhile Li Auto (NASDAQ:LI), Lucid Group (NASDAQ:LCID), and Tesla (NASDAQ:TSLA) all finished the day slightly higher.
Some news that could have an effect on the Chinese EV market moving forward came out on Wednesday. The CCP is contemplating making some changes to the dual credit policy that has allowed EV makers to sell these credits for added revenues. It is similar to the program that Tesla bears have famously criticized when the company was reporting those numbers as profit. Now, it looks like China will also be cracking down on these credits in the near future, which could put a bit of a hitch into the growth stories of Chinese EV makers.
NIO stock price
It isn’t a news day in the EV sector without hearing from Tesla CEO Elon Musk. On Tuesday, Musk once again sold another $1 billion in Tesla shares, which brings the total to nearly $10 billion altogether. While investors shouldn’t really worry about when executives sell stock, it is curious that several other Tesla executives have chosen to sell stock, now that it is at its all-time high.