Why Nio Shares Are Falling

NIO Inc NIO shares are trading significantly lower Thursday alongside several Chinese companies amid renewed delisting concerns after the U.S. Securities and Exchange Commission widened its regulatory crackdown on U.S.-listed Chinese companies for not disclosing audit reports.

The SEC released a provisional list of 80 Chinese companies for pending non-compliance with audit requirements. The companies that have been identified have up to 15 business days to contact the commision and provide evidence to prove compliance. 

Related Link: JD, Nio, Pinduoduo Among 80 Chinese Companies Identified By SEC For Potential Delisting: What Investors Should Know

Nio on Thursday released an update on its status under the Holding Foreign Companies Accountable Act, saying it is aware that it has been provisionally identified by the SEC.

Nio said it is actively exploring possible solutions to protect its shareholders. 

Also of note, Nio provided an April 2022 delivery update on Monday showing slowing vehicle sales. The company said vehicle production and deliveries were impacted by supply chain volatility and a new wave of COVID-19 outbreaks in regions of China.

NIO 52-Week Range: $13.01 - $55.13

According to data from Benzinga Pro, the stock was down 13.7% at $15.66 at press time.

Photo: courtesy of Nio.