Shares of Chinese electric auto maker nio stock news (NIO 0.44%) were rolling today on relatively no company-specific information. Instead, financiers may be reacting to news from yesterday that some parts of China were experiencing a rise in COVID-19 situations.
Much more lockdowns in the nation might once again reduce the company‘s car manufacturing as it has in the recent past. As a result, financiers pressed the electrical vehicle (EV) stock down 6.6% since 10:59 a.m. ET.
CNBC reported yesterday that the number of cities in China that have applied COVID-related restrictions has increased. One of the areas is a district called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter lorry shipments late recently, with quarterly lorry shipments up 14% year over year as well as June deliveries raising 60%. Part of that growth was helped partly due to the fact that pandemic constraints were reduced throughout that duration.
China has an extremely stringent “zero-COVID” policy that limits movement by citizens as well as has caused manufacturing facilities for Nio, and other EV makers, halting lorry production.
Nio investors have actually been on a wild flight lately as they refine inflation data, rising fears of an international recession, and also rising coronavirus instances in China. And with the most recent news that some parts of China are experiencing new lockdowns, it’s most likely that the volatility Nio’s stock has actually experienced lately isn’t completed right now.
Nio shareholders need to maintain a close eye on any type of brand-new advancements about any temporary manufacturing facility shutdowns or if there’s any type of indicator from the Chinese federal government that it’s downsizing on restrictions.
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