Shares of Chinese electrical cars and truck manufacturer nio stock today (NIO 0.44%) were toppling today on apparently no company-specific news. Instead, financiers may be reacting to news from yesterday that some parts of China were experiencing a surge in COVID-19 cases.
Much more lockdowns in the country can once again reduce the firm’s automobile production as it has in the current past. Therefore, investors pushed the electric automobile (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 implemented COVID-related limitations has actually doubled. One of the locations is a district called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter lorry shipments late last week, with quarterly lorry deliveries up 14% year over year and June shipment increasing 60%. Part of that development was assisted in part because pandemic restrictions were reduced throughout that period.
China has a very stringent “zero-COVID” plan that restricts activity by residents and has led to factories for Nio, and also other EV manufacturers, stopping lorry production.
Nio financiers have been on a wild ride lately as they refine rising cost of living data, increasing fears of an international economic downturn, and also increasing coronavirus cases in China. As well as with the most current information that some parts of China are experiencing new lockdowns, it’s likely that the volatility Nio’s stock has actually experienced recently isn’t finished just yet.
Nio shareholders should keep a close eye on any brand-new growths regarding any temporary manufacturing facility closures or if there’s any kind of indicator from the Chinese government that it’s downsizing on constraints.
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