NIO’s Reported Layoffs Could Be Bad News for Tesla, BYD, Other EV Makers

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NIO’s Reported Layoffs Could Be Bad News for Tesla, BYD, Other EV Makers
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The Chinese EV maker is about to lay off 10% of its workforce, according to Reuters. It could have implications for Tesla and other EV peers.

Electric vehicle investors got some concerning news about NIO Friday. It could have implications for Tesla and other EV peers. It might not. It will take investors a while to figure it all out.

Demand doesn’t seem to be the issue. Sales of battery electric vehicles, or BEVs, are up about 20% year over year in China. In recent months, BEVs have accounted for almost 25% of all vehicles sold. NIO stock has been on a nice run this week. Shares surged 4.6% Thursday on an up day for the market. The Nasdaq Composite gained 1.8%. That NIO gain came after a 2.1% jump on Wednesday after the company reported 16,074 units delivered in October.

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