What happened?Stocks of electric vehicle (EV) stocks are notoriously volatile. Today's volatility was evident in NIO, a Chinese EV manufacturer (NYSE:NIO), but it wasn’t the EV industry that caused the problems. Today's shares of many U.S.-listed Chinese stock are in the red. NIO shares dropped 2.4% at first, before rebounding to gain 2.7%. However, shares were down about 1% by Tuesday afternoon at 12:30 p.m. ET.What are you waiting for?After the Chinese government took action against DiDi Global (NYSE :DIDI) last weekend, the seesaw session was held. The Chinese government appears to be telling DiDi who is boss, as DiDi went public last week on the New York Stock Exchange.According to The Wall Street Journal, Chinese regulators launched a cybersecurity assessment of DiDi. They also banned new downloads of DiDi's app. NIO shares rebounded today despite the fact that most Chinese-listed stocks fell at the opening of the U.S. market. However, it is possible that subsequent news about the crackdown being focused on technology companies may have influenced the decline in Chinese stocks.What now?NIO relies heavily on the Chinese government. The agreement that NIO has with Jianghuai Automobile Group, the state-owned Jianghuai Automobile Group allows it to manufacture EVs. The agreement was renewed by the company in May 2024. As the company prepares for its first sedan launch, it doubles its production capacity and begins sales in Norway, its first market other than China, the renewal is significant.Investors were a little nervous about the news of a new crackdown early today, but NIO shares recovered because it appears that the government isn’t targeting U.S. listed companies in a broad network.
