Jim Cramer Says It's Time To Sell Nio

Jim Cramer has advised investors to sell their shares in Chinese electric vehicle maker Nio Inc. NIO as he is “very worried about China.”

What Happened: “We’re done with Chinese IPOs. I want you to sell Nio ... I want you to sell half of it tomorrow, and I hope it goes up,” Cramer said on CNBC’s “Mad Money Lightning Round” on Thursday.

See Also: Nio's Stock Approaching Important Support Level

Why It Matters: Nio’s shares extended losses to a fifth day on Thursday amid growing concerns about the resurgence of COVID-19 in the Asia-Pacific region as well as regulatory concerns in China.

Shares of many U.S.-listed Chinese stocks are tumbling in recent days after the Chinese government’s crackdown on Chinese ride-hailing company DiDi Global Inc. DIDI. DiDi went public on the New York Stock Exchange in late June.

However, Nio is seeing high interest from retail investors. As of late Thursday, the company was the thirteenth most-discussed stock on Reddit’s r/WallStreetBets forum, data from Quiver Quantitative showed. The WSB forum has 10.6 million members and is known for short squeezes.

Nio’s shares are down almost 32% from its 52-week high of $66.99 reached in January and are also down 6.4% for the year-to-date period.

Price Action: Nio’s shares closed almost 1% lower in Thursday’s regular trading session at $45.60, but rose almost 0.9% in the after-hours session to $46.00.

Read Next: 9 Investor Takeaways From The Crackdown On US-Listed Chinese Stocks

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