Shares of Chinese electrical vehicle maker nio stock price today (NIO 0.44%) were rolling today on seemingly no company-specific information. Instead, financiers might be responding to news from the other day that some parts of China were experiencing a surge in COVID-19 situations.
A lot more lockdowns in the country could once again slow down the business‘s car production as it has in the recent past. As a result, investors pressed the electrical car (EV) stock down 6.6% since 10:59 a.m. ET.
CNBC reported the other day that the variety of cities in China that have actually executed COVID-related restrictions has increased. Among the locations is a district called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter automobile distributions late last week, with quarterly automobile deliveries up 14% year over year as well as June shipment raising 60%. Part of that growth was assisted partly due to the fact that pandemic limitations were relieved during that period.
China has a really stringent “zero-COVID” policy that limits activity by residents and has resulted in factories for Nio, and also various other EV makers, stopping automobile manufacturing.
Nio investors have actually been on a wild trip recently as they refine rising cost of living data, rising fears of a global economic crisis, as well as climbing coronavirus instances in China. And with the most current news that some parts of China are experiencing new lockdowns, it’s likely that the volatility Nio’s stock has actually experienced lately isn’t completed right now.
Nio investors should keep a close eye on any brand-new advancements concerning any short-lived manufacturing facility closures or if there’s any kind of sign from the Chinese government that it’s scaling back on restrictions.
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