Shares of Chinese electric vehicle manufacturer nio stock price today (NIO 0.44%) were tumbling this morning on relatively no company-specific news. Instead, capitalists might be responding to information from yesterday that some parts of China were experiencing a rise in COVID-19 situations.
A lot more lockdowns in the nation might once again slow down the company‘s lorry manufacturing as it has in the recent past. Because of this, financiers pushed the electrical car (EV) stock down 6.6% as of 10:59 a.m. ET.
CNBC reported yesterday that the number of cities in China that have implemented COVID-related constraints has actually doubled. Among the areas is a province called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter lorry distributions late last week, with quarterly lorry distributions up 14% year over year and also June deliveries boosting 60%. Part of that development was aided in part due to the fact that pandemic constraints were alleviated throughout that duration.
China has an extremely strict “zero-COVID” policy that restricts activity by people and also has led to manufacturing facilities for Nio, and other EV manufacturers, halting vehicle manufacturing.
Nio financiers have actually gotten on a wild flight lately as they refine inflation data, increasing concerns of a worldwide economic crisis, and also increasing coronavirus situations in China. And also with one of the most recent information that some parts of China are experiencing new lockdowns, it’s likely that the volatility Nio’s stock has actually experienced recently isn’t ended up just yet.
Nio shareholders need to keep a close eye on any type of brand-new developments concerning any type of short-term factory shutdowns or if there’s any sign from the Chinese government that it’s scaling back on limitations.
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