Shares of Chinese electric car manufacturer nio stock forum (NIO 0.44%) were tumbling today on relatively no company-specific news. Rather, financiers may be responding to news from yesterday that some parts of China were experiencing a rise in COVID-19 cases.
Extra lockdowns in the country might once again slow down the firm’s vehicle manufacturing as it has in the current past. Consequently, investors pressed the electric car (EV) stock down 6.6% since 10:59 a.m. ET.
CNBC reported yesterday that the variety of cities in China that have implemented COVID-related restrictions has actually doubled. Among the locations is a district called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter lorry shipments late recently, with quarterly car distributions up 14% year over year and June distribution boosting 60%. Part of that growth was assisted partly since pandemic constraints were alleviated throughout that period.
China has a very strict “zero-COVID” policy that limits movement by people as well as has led to manufacturing facilities for Nio, and other EV manufacturers, stopping lorry production.
Nio investors have actually gotten on a wild flight lately as they refine inflation information, increasing anxieties of a worldwide economic downturn, and increasing coronavirus situations in China. And with one of the most current information 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 just yet.
Nio shareholders need to maintain a close eye on any type of new growths concerning any type of momentary factory shutdowns or if there’s any indicator from the Chinese government that it’s scaling back on restrictions.
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