Nio’s stock slipped as much as 18% on Tuesday, bringing the electric vehicle maker’s two-day slippage to 24% The company was dragged into a wider industry sell-off led by its biggest rival Tesla

Shares of both companies are pulled alongside other tech stocks as investors assess rising borrowing costs amid rising bond yields Bond yields have risen as investors assess a possible rally in inflation following economic recovery after COVID-19 pandemic

“Given their aggressive discounting to present long-term cash flow, they suffer from the same effects as good quality corporate bonds and anything that pushes cash flow far into the future,” said Bespoke Investment Group on tech stocks in Monday note

As proof, the company pointed to the over 4% underperformance of the Nasdaq 100 against the Russell 2000 index of small cap stocks over the past two days

Tesla shares fell 5% to 9% on Tuesday after a similar size drop the day before The stock has been under pressure since the company halted orders for the cheaper version of its Model Y SUV during of the weekend

Prior to the two-day drop, Nio’s share price had climbed in recent months due to growing investor interest in electric vehicles and green energy products, factors which also contributed to the soaring shares of electric vehicle maker Tesla

Nio stock

World news – US – Nio 2-day drop stretches to 24% as electric vehicle stock dynamics slows