Shares of Chinese electrical car manufacturer nio stock price today (NIO 0.44%) were rolling today on seemingly no company-specific news. Rather, capitalists may be reacting to information from yesterday that some parts of China were experiencing a rise in COVID-19 cases.
More lockdowns in the nation could once again slow the company‘s vehicle manufacturing as it has in the recent past. Therefore, financiers 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 carried out COVID-related restrictions has actually doubled. Among the locations is a province called Anhui, where Nio has a factory.
Nio reported its second-quarter lorry shipments late last week, with quarterly vehicle distributions up 14% year over year and June distribution increasing 60%. Part of that development was aided partly due to the fact that pandemic restrictions were relieved throughout that period.
China has a very strict “zero-COVID” policy that restricts activity by citizens and also has actually led to factories for Nio, and other EV makers, stopping automobile manufacturing.
Nio investors have gotten on a wild flight recently as they refine rising cost of living information, increasing concerns of a global economic downturn, as well as rising coronavirus situations in China. And with one of 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 actually experienced recently isn’t finished right now.
Nio shareholders must maintain a close eye on any new developments about any type of momentary manufacturing facility closures or if there’s any kind of sign from the Chinese federal government that it’s scaling back on restrictions.
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