The Nio share even fell by 18% on Tuesday and extended the two-day skid of the electric vehicle manufacturer to 24% The company has been embroiled in a broader industry sell-off led by bigger rival Tesla

Stocks of both companies are being pulled back along with other tech stocks as investors judge rising cost of borrowing amid rising bond yields Bond yields have risen as investors price in a potential rise in inflation amid the economic recovery from the COVID-19 pandemic

“Given their aggressive discounting of long-term cash flows, they suffer the same effects as investment-grade corporate bonds and anything else that drives cash flow far into the future,” the Bespoke Investment Group said of technology stocks in a Monday note. p>
As evidence, the company highlighted the Nasdaq 100 underperformed the Russell 2000 index for small cap stocks by more than 4% over the past two days

Tesla shares fell 5% to 9% on Tuesday after falling similarly the day before. Stock has been under pressure since the company stopped orders for the cheapest version of its Model Y SUV over the weekend >

Prior to the two-day decline, Nio’s share price had risen in recent months due to growing investor interest in electric vehicles and green energy products These factors also contributed to the rise in EV maker Tesla

Nio Share

World News – USA – Nio’s two-day slump goes up to 24% as EV stock momentum slows