Shares of the Chinese EV-maker NIO Inc. (NIO) are down 38.5% in price year-to-date due to Beijing's recent crackdown on U.S.-listed Chinese companies. Furthermore, as the United States tightens its regulatory scrutiny of foreign companies—which has raised speculation about the potential for NIO to be delisted from U.S. exchanges—is it worth betting on the stock at its current price level? Let's find out.Jiading, China-based EV manufacturer NIO Inc. (NIO) produces five-, six- and seven-seater electric SUVs and smart electric cars. The company has made solid progress on the operational front over the past months by deploying Power Swap stations 2.0 and in beginning construction of its new plant in Xinqiao Industrial Park in Hefei.
However, due to the negative investor sentiment fostered by the Chinese government's crackdown on ride-hailing app provider Didi Global Inc., NIO's stock has declined 38.5% in price year-to-date. Closing yesterday's trading session at $30, the stock is currently trading 55.2% lower than its 52-week high of $66.99.
In addition, the company's shares have declined 24.4% over the past month since the U.S. Securities and Exchange Commission increased its scrutiny of foreign stocks. So, as the company struggles to meet its production levels amid current supply chain constraints, investors remain concerned over its prospects.