Nio, Inc. (NYSE: NIO) stock has been on a downward spiral since it hit an all-time high of $66.99 in early January 2021.
Taking advantage of the retreat, Norges bank accumulated shares of the Chinese EV startup in the fourth quarter of 2021.
What Happened: Norges Bank held 13,749,756 shares of Nio at the end of December, with the holdings valued at $435.592 million, a 13F report filed by the bank earlier this week revealed.
Norges Bank is the central bank of Norway. Apart from discharging its duties as a traditional central bank, it also manages the Government Pension Fund Global of Norway, aka the Oil Fund, which is credited with being the world's largest sovereign fund.
At the end of September, the central bank owned 10,512,753 shares of Nio, valued at $223.081 million.
Related Link: Nio Analyst Predicts Over 200% Upside For Stock: 'EV Maker Has Clear Growth Prospects In 2022'
Why It's Important: Nio's lean patch is partly attributable to industrywide supply chain challenges, which forced the company to shutter production for five days in early 2021.
The company faced a production disruption in October as it went about revamping its production line to accommodate production of its upcoming vehicle models.
The stock's weakness also reflects fears of potential delisting in the U.S. The SEC released earlier this week a list of five U.S.-listed Chinese companies that could face delisting for not turning over their audit documents that support their financial statements.
Nio's Hong Kong listing is now done and dusted. The company's fundamentals could also improve, backed by a series of new vehicle launches planned for the year and an international expansion.
NIO Price Action: The selling in Nio's stock that intensified on Thursday on the back of delisting fears has extended to Friday's session. The stock has hit a new bottom and was trading down 7.37% at $16.46 Friday morning.
Photo courtesy of Nio.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga