Why NIO Inc. (NIO) Went Down On Tuesday

We recently published a list of 10 Stocks Got Wiped Out. Are You Holding Any? In this article, we are going to take a look at where NIO Inc. (NYSE:NIO) stands against other worst-performing stocks.

NIO dropped for a sixth consecutive day on Tuesday as investors disposed of shares in electric vehicles following a giant EV-maker’s move to markedly slash its vehicle prices, while mitigating risks amid renewed calls to delist Chinese companies.

Last week, BYD announced discounts on 22 of its electric and plug-in hybrid models until the end of June, fanning the flames of a cut-throat competition in the electric vehicle industry.

Last month, NIO Inc. (NYSE:NIO) said it delivered 23,900 vehicles, representing a 53 percent growth from the 15,620 vehicles in the same month last year.

The deliveries consisted of 19,269 vehicles from NIO’s premium smart electric vehicle brand NIO, 4,400 vehicles from NIO’s family-oriented smart electric vehicle brand ONVO, and initial deliveries of NIO’s small smart high-end electric car brand Firefly. Cumulative deliveries reached 737,558 as of April 30, 2025.

Meanwhile, top Republican financial officers from 21 states have asked Securities and Exchange Commission Chairman Paul Atkins, through a letter dated May 20, to review the possibility of delisting Chinese firms from US exchanges in a bid to protect US investors.

A fleet of eco-friendly electric cars, a symbol of the company’s commitment to sustainability.

The companies were accused of not complying with federal audit requirements, audit deficiencies, crackdowns on firms that do due diligence research on Chinese companies, alleged stock manipulation, as well as national security concerns.

Overall, NIO ranks 7th on our list of worst-performing stocks. While we acknowledge the potential of NIO, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NIO and that has 10,000x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.