Shares of Chinese electric automobile maker nio stock today (NIO 0.44%) were toppling this morning on apparently no company-specific information. Rather, investors might be responding to information from yesterday that some parts of China were experiencing a surge in COVID-19 situations.
A lot more lockdowns in the country might once again slow down the company's vehicle manufacturing as it has in the recent past. Consequently, investors pressed the electrical automobile (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 actually implemented COVID-related constraints has increased. Among the areas is a province called Anhui, where Nio has a factory.
Nio reported its second-quarter automobile deliveries late last week, with quarterly car deliveries up 14% year over year and June deliveries enhancing 60%. Part of that development was helped in part because pandemic constraints were alleviated throughout that duration.
China has a very rigorous "zero-COVID" plan that limits activity by residents as well as has resulted in factories for Nio, and various other EV manufacturers, halting lorry manufacturing.
Nio capitalists have been on a wild flight lately as they process inflation information, climbing anxieties of a worldwide economic crisis, and also 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 lately isn't completed just yet.
Nio investors must keep a close eye on any new developments about any kind of temporary manufacturing facility shutdowns or if there's any type of sign from the Chinese government that it's scaling back on restrictions.
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