Shares of Chinese electrical vehicle manufacturer nio stock quote (NIO 0.44%) were rolling this morning on apparently no company-specific information. Instead, investors may be responding to news from the other day that some parts of China were experiencing a surge in COVID-19 instances.
More lockdowns in the country could once again slow the firm’s car production as it has in the recent past. Therefore, capitalists pressed the electrical vehicle (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 constraints has actually doubled. One of the locations is a province called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter car shipments late last week, with quarterly lorry deliveries up 14% year over year as well as June shipment raising 60%. Part of that development was aided partially since pandemic restrictions were reduced throughout that period.
China has a really rigorous “zero-COVID” plan that restricts activity by residents and has actually resulted in manufacturing facilities for Nio, as well as various other EV manufacturers, stopping car manufacturing.
Nio investors have actually been on a wild trip lately as they process inflation data, climbing concerns of a global recession, and climbing coronavirus cases in China. As well as with the most recent 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 ended up right now.
Nio shareholders must maintain a close eye on any kind of brand-new advancements regarding any type of temporary manufacturing facility closures or if there’s any type of indicator from the Chinese government that it’s downsizing on constraints.
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