Shares of Chinese electrical auto manufacturer nio stock quote (NIO 0.44%) were toppling today on relatively no company-specific news. Instead, investors might be responding to information from yesterday that some parts of China were experiencing a surge in COVID-19 instances.
More lockdowns in the nation can once again reduce the company‘s car manufacturing as it has in the current past. Therefore, investors pushed the electric vehicle (EV) stock down 6.6% as of 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. One of the areas is a district called Anhui, where Nio has a factory.
Nio reported its second-quarter lorry shipments late last week, with quarterly automobile shipments up 14% year over year as well as June distribution boosting 60%. Part of that growth was helped in part since pandemic limitations were reduced during that period.
China has an extremely stringent “zero-COVID” policy that limits activity by citizens as well as has actually led to factories for Nio, as well as various other EV makers, halting automobile manufacturing.
Nio investors have actually been on a wild ride recently as they refine rising cost of living data, rising concerns of a worldwide economic downturn, as well as rising coronavirus cases in China. And with the most recent information that some parts of China are experiencing new lockdowns, it’s likely that the volatility Nio’s stock has experienced recently isn’t completed just yet.
Nio investors must maintain a close eye on any brand-new advancements regarding any momentary manufacturing facility shutdowns or if there’s any type of indicator from the Chinese federal government that it’s scaling back on constraints.
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