Shares of Chinese electric car maker nio stock today (NIO 0.44%) were tumbling today on relatively no company-specific information. Rather, investors may be reacting to information from the other day that some parts of China were experiencing a surge in COVID-19 instances.
Much more lockdowns in the nation might once again slow down the business‘s lorry manufacturing as it has in the recent past. Consequently, capitalists pushed the electrical lorry (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 actually applied COVID-related restrictions has actually increased. Among the areas is a province called Anhui, where Nio has a factory.
Nio reported its second-quarter car distributions late last week, with quarterly vehicle distributions up 14% year over year and June shipment enhancing 60%. Part of that growth was assisted partially because pandemic restrictions were relieved throughout that period.
China has a very rigorous “zero-COVID” policy that restricts motion by residents and has caused manufacturing facilities for Nio, and also various other EV manufacturers, stopping lorry production.
Nio capitalists have actually been on a wild trip recently as they refine inflation data, increasing concerns of a global recession, and climbing coronavirus situations in China. And with one of the most recent news that some parts of China are experiencing new lockdowns, it’s likely that the volatility Nio’s stock has experienced lately isn’t finished just yet.
Nio shareholders must keep a close eye on any type of new developments about any short-lived manufacturing facility closures or if there’s any indication from the Chinese federal government that it’s downsizing on limitations.
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