Shares of Chinese electrical vehicle maker nio stock (NIO 0.44%) were toppling this morning on apparently no company-specific news. Rather, financiers might be reacting to news from yesterday that some parts of China were experiencing a rise in COVID-19 cases.
Much more lockdowns in the nation might once more reduce the business‘s automobile production as it has in the recent past. Therefore, capitalists pushed the electrical car (EV) stock down 6.6% since 10:59 a.m. ET.
CNBC reported the other day that the number of cities in China that have applied COVID-related restrictions has increased. Among the areas is a province called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter automobile deliveries late recently, with quarterly lorry deliveries up 14% year over year as well as June deliveries boosting 60%. Part of that development was helped partly because pandemic restrictions were alleviated during that period.
China has a very strict “zero-COVID” plan that limits activity by residents and has led to factories for Nio, and other EV manufacturers, stopping car manufacturing.
Nio investors have actually been on a wild trip recently as they process inflation data, rising worries of an international recession, as well as increasing coronavirus cases in China. As well as with one of the most recent 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 investors ought to keep a close eye on any kind of brand-new advancements concerning any temporary manufacturing facility shutdowns or if there’s any kind of indicator from the Chinese federal government that it’s downsizing on constraints.
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