Shares of Chinese electrical car manufacturer nio stock news (NIO 0.44%) were tumbling today on apparently no company-specific information. Instead, financiers may be reacting to information from the other day that some parts of China were experiencing a rise in COVID-19 instances.
Much more lockdowns in the country could once more slow the business‘s automobile manufacturing as it has in the recent past. Consequently, capitalists pressed the electrical vehicle (EV) stock down 6.6% since 10:59 a.m. ET.
CNBC reported the other day that the number of cities in China that have actually applied COVID-related constraints has increased. One of the locations is a province called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter automobile deliveries late last week, with quarterly car distributions up 14% year over year as well as June deliveries increasing 60%. Part of that growth was aided partially due to the fact that pandemic restrictions were alleviated throughout that period.
China has a really stringent “zero-COVID” plan that restricts activity by citizens and has led to factories for Nio, and other EV manufacturers, halting vehicle manufacturing.
Nio investors have gotten on a wild flight recently as they process rising cost of living data, climbing fears of a global economic downturn, and climbing coronavirus instances in China. And also with the most recent news that some parts of China are experiencing new lockdowns, it’s likely that the volatility Nio’s stock has experienced lately isn’t completed just yet.
Nio investors ought to keep a close eye on any brand-new advancements regarding any short-lived factory closures or if there’s any kind of indicator from the Chinese government that it’s downsizing on limitations.
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