Shares of Chinese electric car maker nio stock price today (NIO 0.44%) were toppling today on seemingly no company-specific news. Rather, capitalists may be reacting to information from the other day that some parts of China were experiencing a rise in COVID-19 instances.
A lot more lockdowns in the nation could once again slow down the business‘s car production as it has in the current past. Therefore, financiers pressed the electric automobile (EV) stock down 6.6% as of 10:59 a.m. ET.
CNBC reported yesterday that the number of cities in China that have actually carried out COVID-related restrictions has doubled. Among the areas is a district called Anhui, where Nio has a factory.
Nio reported its second-quarter automobile distributions late recently, with quarterly vehicle shipments up 14% year over year and also June deliveries increasing 60%. Part of that development was helped partly due to the fact that pandemic constraints were eased throughout that duration.
China has an extremely stringent “zero-COVID” plan that restricts activity by citizens as well as has actually led to manufacturing facilities for Nio, as well as other EV manufacturers, halting lorry production.
Nio investors have gotten on a wild ride lately as they refine rising cost of living information, climbing concerns of an international recession, as well as rising coronavirus cases in China. As well as with one of the most recent information 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 investors should maintain a close eye on any type of new growths about any type of short-term manufacturing facility closures or if there’s any kind of indicator from the Chinese federal government that it’s downsizing on limitations.
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