Nio plunges as China reports falling auto sales

Share of China-based electric vehicle maker Nio Inc sank 3.5% in premarket trading on Monday.

Nio was dragged down by data that showed that China’s car sales fell for the eighth straight month in January.

The China Passenger Car Association said January retail sales of passenger cars declined 4.4% from a year ago.

The association said sales are expected to remain sluggish in February, as COVID-19 outbreaks and a slowing economy weigh on demand.

Among other China-based EV makers, shares of Xpeng Inc fell 2.4% and Li Auto dropped 2.8%.

Tesla Inc also shed 2.0% premarket, as the U.S.-based EV leader had $13.84 billion revenue from China in 2021, or 25.7% of total revenue.

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