NIO Inc.'s stock plummeted 5.10% on Tuesday, amid a downgrade by HSBC and indications of a slowdown in early January deliveries.
HSBC lowered its rating on NIO from "Buy" to "Hold," and reduced the price target from $7.20 to $4.50. This downgrade likely contributed to the stock's decline during the trading session.
Additionally, data from Li Auto showed that NIO had only 3,000 insurance registrations in China during the week ending January 5, a significant 53.85% decrease from the previous week's 6,500 registrations. This drop in early January deliveries could also have weighed on investor sentiment, as it suggests a potential slowdown in NIO's sales momentum at the start of the new year.
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