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Why Shares of Chinese electric auto maker Nio (NIO 0.44%) were rolling this morning?

Shares of Chinese electrical car makerĀ nio stock quote (NIO 0.44%) were tumbling this morning on apparently no company-specific information. Instead, capitalists may be responding to news from the other day that some parts of China were experiencing a rise in COVID-19 situations.

Extra lockdowns in the country could once again slow the company‘s vehicle production as it has in the current past. Therefore, investors pressed the electric lorry (EV) stock down 6.6% as of 10:59 a.m. ET.

CNBC reported yesterday that the number of cities in China that have executed COVID-related restrictions has doubled. One of the locations is a province called Anhui, where Nio has a manufacturing facility.

Nio reported its second-quarter lorry deliveries late recently, with quarterly lorry shipments up 14% year over year as well as June deliveries raising 60%. Part of that development was assisted in part because pandemic restrictions were relieved during that duration.

China has an extremely strict “zero-COVID” plan that restricts movement by citizens as well as has resulted in manufacturing facilities for Nio, as well as other EV manufacturers, stopping car production.

Nio capitalists have gotten on a wild trip recently as they refine rising cost of living data, rising concerns of a global recession, and also increasing coronavirus instances in China. And also with the most current news 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 ended up right now.

Nio investors need to keep a close eye on any kind of brand-new developments about any type of short-lived manufacturing facility closures or if there’s any indication from the Chinese government that it’s downsizing on limitations.

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