American depositary shares of Chinese language electrical car (EV) maker Nio (NYSE: NIO) plunged as a lot as 7% Wednesday morning after the corporate lowered first-quarter supply estimates.Nio had beforehand instructed traders it anticipated to ship as many as 33,000 autos within the quarterly interval. Now it sees solely about 30,000 models to be delivered. That information added to the pessimism traders have already felt relating to Nio’s prospects. Nio shares are actually down about 50% simply this yr.Is the electrical car market already saturated?China is the world’s largest EV market. At the same time as Nio expands into Europe, it’s counting on its dwelling market to proceed rising rapidly. Final yr, virtually 9 million battery-electric autos have been bought in China, the U.S. and Europe mixed. Greater than two-thirds of these have been in China. However the charge of progress has been slowing and automakers are slashing costs to attempt to proceed supporting progress.With many early adopters already having bought autos, a slowdown in progress has been evident in 2024. Nio’s month-to-month unit quantity gross sales have dropped noticeably since peaking final July.Knowledge supply: Nio. Chart by creator.Traders must determine whether or not they imagine the slowing progress development is simply non permanent, or whether or not a long-term pivot to affect transportation is coming. Citigroup analyst Jeff Chung nonetheless sees about 27% of recent automotive gross sales in China being all-electric in 2024. Within the U.S. penetration is way decrease to date, with solely about 8% of automotive gross sales being totally electrical.For individuals who imagine the runway for adoption stays lengthy, investing in Nio and different EV makers may make sense. However the danger of being fallacious also needs to play a job in how a lot you need to danger in a still-evolving new market.Must you make investments $1,000 in Nio proper now?Before you purchase inventory in Nio, take into account this:The Motley Idiot Inventory Advisor analyst crew simply recognized what they imagine are the 10 finest shares for traders to purchase now… and Nio wasn’t considered one of them. The ten shares that made the minimize may produce monster returns within the coming years.Story continuesStock Advisor offers traders with an easy-to-follow blueprint for achievement, together with steerage on constructing a portfolio, common updates from analysts, and two new inventory picks every month. The Inventory Advisor service has greater than tripled the return of S&P 500 since 2002*.See the ten shares*Inventory Advisor returns as of March 25, 2024Citigroup is an promoting accomplice of The Ascent, a Motley Idiot firm. Howard Smith has positions in Nio. The Motley Idiot has positions in and recommends Nio. The Motley Idiot has a disclosure coverage.Nio Simply Reduce Supply Estimates. Is It Time to Promote the Inventory? was initially printed by The Motley Idiot