Nio Shares Drop as Weaker Outlook Clouds Push to Break Even

Chinese officials have sought to rein in the sprawling EV sector this year.

Photographer: Qilai Shen/Bloomberg

Nio Inc. shares tumbled after the carmaker’s disappointing outlook for the fourth quarter fueled investor concerns about its ability to reach a break-even target as industry competition intensifies.

The stock dropped 7.3% in Hong Kong on Wednesday after Nio forecastBloomberg Terminal fourth-quarter revenue of as much as 34.04 billion yuan ($4.8 billion), falling short of expectations of 34.7 billion yuan. Its sales outlook of between 120,000 and 125,000 vehicles also missed analyst estimates.