Key points:
- NIO shares have fallen significantly this year
- The company has been impacted by macroeconomic and geopolitical factors
- NIO and SKF will expand cooperation
Shares of NIO are down more than 3% premarket, resuming the decline after a slight pause over the last couple of days.
The Chinese electric vehicle company's shares have fallen over 67% in 2022 as macroeconomic factors have weighed on the stock and others similar such as Li Auto and XPeng.
Also Read: The Best Electric Car Stocks to Buy
On Monday, NIO and other US-listed Chinese companies tumbled — NIO closed 15% lower — after Chinese Communist Party leader Xi Jinping tightened his grip on power, securing a third term, rattling investors.
Xi packed the core circle of power in the ruling party with loyalists, and investors believe he will continue to implement policies that will be detrimental to growth. For example, he has previously tightened regulations on the tech sector.
However, over the last couple of days, NIO's share price had edged higher, closing up more than 12% on Tuesday and climbing 1.7% on Wednesday before falling in Thursday's premarket session.
NIO and SKF
Today it was announced that Swedish company SKF and NIO have strengthened their strategic cooperation.
The agreement will see SKF become a preferred supplier of ceramic ball bearings and provide technical expertise to support NIO's product development and global expansion plans. In 2022, NIO has begun its launch to expand outside of China, with vehicles available to order in countries such as Netherlands, Germany, Sweden, and Denmark.
“SKF has supported NIO since the launch of their first car in 2014. During this time, we have built a strong technical relationship, which is exemplified by this agreement. It also illustrates SKF's premium capability within electric vehicles and our ability to support customers all over the world,” said David Johansson, President of SKF Automotive.