NIO (NIO  ) went from being one of the hottest stocks in the market to a major loser. The company went from being on the brink of bankruptcy before it received a cash injection from the local government.

Then, the company's cars became a huge hit, despite limited production that led to pre-bookings and long waits. The company also drew comparisons to Tesla (TSLA  ) and was able to ride its coattails as Tesla's stock began an epic bull run. It also benefited from the stock market frenzy, mania in EV stocks, and craze for growth stocks.

Overall, shares were up more than 3,000% between March 2020 and their peak in January 2021. Since then, shares are down by 75%. The major factors in this decline are the selloff in growth stocks due to inflation and a hawkish Federal Reserve, an aversion to Chinese stocks amid that country's economic weakness and increased tensions between the U.S. and China, and the company hitting some road bumps as it looks to ramp up production. Additionally, a slew of new EV models is expected to hit the market in the coming years which heralds increased competition.

Some investors may see this as a buying opportunity given the 75% decline, and its continued status as one of the leading EV companies in China that is just starting to expand internationally. We also know that some of the stocks that have been crushed by this bear market will go on to make new highs. And a true long-term investor in the stock would welcome this decline as an opportunity to dollar cost average at a cheaper price.

Another reason to buoy the spirit of Nio bulls is that George Soros revealed a stake in the stock in his recent filing. Cathie Wood is also building a stake in the stock as she lightens up on her Tesla position. Additionally, Ray Dalio's Bridgewater Capital already had a stake in the stock but boosted it by 73%.