Shares of Chinese electric automobile manufacturer nio stock today (NIO 0.44%) were toppling today on seemingly no company-specific information. Rather, investors may be responding to news from the other day that some parts of China were experiencing a rise in COVID-19 situations.
Much more lockdowns in the nation can once again slow the company‘s vehicle production as it has in the current past. Therefore, investors pushed the electric vehicle (EV) stock down 6.6% as of 10:59 a.m. ET.
CNBC reported the other day that the variety of cities in China that have actually applied COVID-related constraints has increased. Among the areas is a province called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter lorry distributions late last week, with quarterly vehicle shipments up 14% year over year and June deliveries increasing 60%. Part of that development was helped in part because pandemic limitations were reduced during that duration.
China has a very stringent “zero-COVID” plan that limits activity by citizens and also has led to manufacturing facilities for Nio, and also various other EV makers, stopping lorry manufacturing.
Nio financiers have actually been on a wild trip recently as they process rising cost of living data, rising worries of an international economic crisis, and also increasing coronavirus cases in China. As well as with the most recent news that some parts of China are experiencing brand-new lockdowns, it’s likely that the volatility Nio’s stock has actually experienced lately isn’t completed just yet.
Nio shareholders need to keep a close eye on any kind of new developments concerning any temporary factory closures or if there’s any kind of indication from the Chinese government that it’s scaling back on restrictions.
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