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Nio (NIO) investors are bound to be disappointed with its price action, as the stock has lost nearly half of its market capitalization so far in 2024. What adds insult to injury is that the S&P 500 Index ($SPX) has delivered double-digit returns over the same period, and so have Chinese markets.
Nio’s dismal price action is not limited to 2024. The stock has closed in the red in each of the previous three years after having peaked in early 2021 when its valuation surged past $100 billion. The Chinese electric vehicle (EV) company’s market cap is now below $10 billion and what once looked like a potential “Tesla killer” is now fighting for relevance in an overcrowded EV market.