Shares of Chinese electric car maker nio stock price today (NIO 0.44%) were rolling this morning on apparently 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 instances.
More lockdowns in the country might once more reduce the business's car production as it has in the recent past. Therefore, financiers pushed the electrical automobile (EV) stock down 6.6% as of 10:59 a.m. ET.
CNBC reported the other day that the number of cities in China that have executed COVID-related restrictions has doubled. One of the areas is a district called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter lorry distributions late last week, with quarterly lorry deliveries up 14% year over year and also June distribution boosting 60%. Part of that growth was aided partly since pandemic limitations were reduced during that duration.
China has a very strict "zero-COVID" policy that limits motion by residents and also has led to factories for Nio, as well as various other EV manufacturers, stopping lorry manufacturing.
Nio capitalists have gotten on a wild flight recently as they refine inflation data, climbing concerns of an international economic downturn, and climbing coronavirus situations in China. And with one of the most recent information 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 shareholders ought to maintain a close eye on any type of new growths concerning any type of momentary manufacturing facility closures or if there's any type of indication from the Chinese federal government that it's scaling back on limitations.
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