Why Shares of Chinese electric car maker Nio (NIO 0.44%) were tumbling today?

Shares of Chinese electric cars and truck manufacturer nio stock quote (NIO 0.44%) were tumbling this morning on seemingly no company-specific news. Instead, financiers may be responding to information from the other day that some parts of China were experiencing a surge in COVID-19 instances.

A lot more lockdowns in the nation can once more reduce the business‘s automobile manufacturing as it has in the recent past. As a result, financiers pushed the electrical lorry (EV) stock down 6.6% as of 10:59 a.m. ET.

CNBC reported the other day that the variety of cities in China that have implemented COVID-related constraints has increased. Among the areas is a district called Anhui, where Nio has a manufacturing facility.

Nio reported its second-quarter lorry shipments late last week, with quarterly automobile distributions up 14% year over year and June distribution boosting 60%. Part of that growth was assisted partially because pandemic constraints were reduced throughout that period.

China has a very strict “zero-COVID” policy that restricts motion by people and has led to factories for Nio, and also various other EV makers, halting car manufacturing.

Nio capitalists have actually gotten on a wild ride recently as they refine inflation data, rising anxieties of a global economic crisis, and also increasing coronavirus instances in China. As well as 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 lately isn’t ended up just yet.

Nio investors should maintain a close eye on any kind of brand-new developments concerning any type of momentary manufacturing facility closures or if there’s any indicator from the Chinese government that it’s scaling back on limitations.

Should you spend $1,000 in Nio Inc. right now?
Before you think about Nio Inc., you’ll want to hear this.

Navigation