NIO-SW shares plummeted 5.33% during intraday trading on Friday, reflecting significant selling pressure on the electric vehicle manufacturer.

The sharp decline follows warnings from NIO founder and CEO William Li, who stated that the domestic retail auto market sales declined 19.5% year-on-year from January to May. Li characterized the current environment as the most difficult year since he entered the industry and warned that the sector should prepare for a full-year decline of 15% to 20%.

Further intensifying market concerns is a public dispute over technology routes between NIO and rival Li Auto. NIO advocates that pure electric vehicles represent the ultimate path forward, while Li Auto defends its extended-range approach, highlighting competitive dynamics within the evolving EV landscape. This sector-wide pressure was also reflected in declines across other major automakers.