Shares of Chinese electrical vehicle manufacturer nio stock today (NIO 0.44%) were rolling today on apparently no company-specific news. Instead, financiers may be responding to information from yesterday that some parts of China were experiencing a surge in COVID-19 instances.
Extra lockdowns in the country can once again slow the firm’s automobile manufacturing as it has in the current past. Consequently, investors pushed the electric car (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 actually applied COVID-related limitations has actually doubled. Among the areas is a district called Anhui, where Nio has a factory.
Nio reported its second-quarter vehicle deliveries late recently, with quarterly automobile shipments up 14% year over year and also June shipment increasing 60%. Part of that growth was assisted partially since pandemic limitations were alleviated during that duration.
China has an extremely stringent “zero-COVID” policy that limits motion by people as well as has caused manufacturing facilities for Nio, and various other EV makers, stopping lorry manufacturing.
Nio financiers have actually been on a wild flight recently as they process inflation data, climbing concerns of a global economic crisis, and also climbing coronavirus cases in China. And with one of the most current news that some parts of China are experiencing new lockdowns, it’s most likely that the volatility Nio’s stock has experienced lately isn’t ended up right now.
Nio investors should keep a close eye on any kind of brand-new advancements concerning any kind of temporary factory shutdowns or if there’s any indication from the Chinese federal government that it’s scaling back on limitations.
Should you spend $1,000 in Nio Inc. right now?
Prior to you think about Nio Inc., you’ll wish to hear this.