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NIO Stock Drops After Report EV With Self-Driving Feature Crashed

NIO drops after reports said one of its all-electric SUVs with its self-driving feature activated was involved in a fatal crash.

U.S.-listed shares of Nio  (NIO) - Get NIO Inc. Sponsored ADR Class A Report fell on Monday after a Chinese executive reportedly died in an accident while driving one of the Chinese electric-vehicle maker's model ES8 SUVs.

Shares of the Shanghai company at last check fell 5.8% to $38.66.

Lin Wenqin, founder of the brand-management firm Meiyihao, died last Thursday in an accident after activating the autopilot navigation system in his NIO SUV, according to news reports by several Chinese media outlets.

The NIO ES8 is equipped with several driver-assistance functions, including features enabled by Intel  (INTC) - Get Intel Corporation (INTC) Report division Mobileye, that enable some forms of autonomous driving, Barron's reported.

NIO’s driver-assistance functions are called NIO Pilot and employ cameras as the so-called eyes of the car.

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In July, a NIO SUV, the model EC6, reportedly caught fire when it hit a stone pier in Shanghai, according to another Chinese media news report. The driver was killed.

NIO reported a narrower-than-expected second-quarter loss on a recovery in car-buyer demand, and said it’s working with semiconductor suppliers to mitigate the impact on production from a global chip shortage, Bloomberg reported last week.

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Separately, U.S. authorities have opened a formal probe into electric-vehicle maker Tesla's  (TSLA) - Get Tesla Inc Report autopilot system, after they identified 31 accidents connected to the use of the system over the past three and a half years.

The National Highway Traffic Safety Administration said it would look at the autopilot system in around 765,000 Tesla Model X and Model Y SUVs and Model S and Model 3 sedans made between 2014 and 2021.