Shares of Chinese electrical car manufacturer nio stock price today (NIO 0.44%) were rolling this morning on apparently no company-specific information. Rather, 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 can once more slow the firm’s lorry manufacturing as it has in the current past. Consequently, financiers pressed the electrical vehicle (EV) stock down 6.6% as of 10:59 a.m. ET.
CNBC reported yesterday that the variety of cities in China that have actually executed COVID-related restrictions has actually doubled. Among the locations is a province called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter car deliveries late recently, with quarterly car deliveries up 14% year over year as well as June shipment enhancing 60%. Part of that growth was assisted partly since pandemic restrictions were reduced throughout that period.
China has a really stringent “zero-COVID” policy that limits activity by residents as well as has caused manufacturing facilities for Nio, and other EV manufacturers, stopping automobile production.
Nio investors have gotten on a wild ride lately as they process inflation information, rising worries of a worldwide economic downturn, and climbing coronavirus cases in China. And also with the most recent news that some parts of China are experiencing brand-new lockdowns, it’s most likely that the volatility Nio’s stock has experienced recently isn’t completed just yet.
Nio shareholders ought to keep a close eye on any kind of new advancements regarding any type of short-term manufacturing facility closures or if there’s any kind of indication from the Chinese government that it’s downsizing on constraints.
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