Shares of Chinese electrical automobile manufacturer nio stock price today (NIO 0.44%) were rolling this morning on seemingly no company-specific information. Instead, investors may be responding to information from yesterday that some parts of China were experiencing a surge in COVID-19 situations.
More lockdowns in the country can once again reduce the company‘s vehicle production as it has in the current past. Consequently, investors pressed the electric vehicle (EV) stock down 6.6% as of 10:59 a.m. ET.
CNBC reported yesterday that the variety of cities in China that have executed COVID-related restrictions has doubled. One of the areas is a district called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter car distributions late recently, with quarterly automobile deliveries up 14% year over year and June distribution enhancing 60%. Part of that growth was aided in part due to the fact that pandemic constraints were reduced throughout that duration.
China has a very rigorous “zero-COVID” policy that limits movement by residents and has actually caused manufacturing facilities for Nio, as well as various other EV manufacturers, stopping car production.
Nio investors have gotten on a wild flight recently as they process rising cost of living data, rising fears of a worldwide economic crisis, and climbing coronavirus cases in China. As well as with one of the most current news that some parts of China are experiencing brand-new lockdowns, it’s likely that the volatility Nio’s stock has actually experienced recently isn’t ended up just yet.
Nio shareholders ought to keep a close eye on any brand-new developments concerning any kind of temporary factory shutdowns or if there’s any type of indicator from the Chinese federal government that it’s scaling back on restrictions.
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