Shares of Chinese electric cars and truck manufacturer nio stock news (NIO 0.44%) were tumbling today on apparently no company-specific news. Rather, investors may be responding to information from the other day that some parts of China were experiencing a rise in COVID-19 instances.
Extra lockdowns in the nation could once more slow the business‘s car manufacturing as it has in the recent past. As a result, financiers pushed the electric car (EV) stock down 6.6% as of 10:59 a.m. ET.
CNBC reported the other day that the variety of cities in China that have applied COVID-related constraints has actually increased. Among the areas is a district called Anhui, where Nio has a factory.
Nio reported its second-quarter lorry shipments late recently, with quarterly car deliveries up 14% year over year and also June distribution boosting 60%. Part of that growth was aided partly because pandemic limitations were reduced throughout that period.
China has a very strict “zero-COVID” plan that limits motion by people as well as has led to factories for Nio, as well as other EV makers, halting car manufacturing.
Nio investors have been on a wild flight lately as they process rising cost of living information, rising concerns of a global recession, as well as climbing coronavirus situations in China. And with one of the most current news that some parts of China are experiencing new lockdowns, it’s most likely that the volatility Nio’s stock has experienced lately isn’t completed just yet.
Nio shareholders ought to maintain a close eye on any brand-new developments regarding any temporary manufacturing facility closures or if there’s any sign from the Chinese federal government that it’s scaling back on restrictions.
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