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

Shares of Chinese electric vehicle makerĀ nio stock price today (NIO 0.44%) were rolling this morning on apparently no company-specific information. Instead, financiers might be responding to news from yesterday that some parts of China were experiencing a rise in COVID-19 instances.

Extra lockdowns in the country might once more reduce the business‘s vehicle manufacturing as it has in the recent past. Therefore, investors pressed the electrical 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 applied COVID-related restrictions has actually increased. One of the areas is a province called Anhui, where Nio has a factory.

Nio reported its second-quarter vehicle deliveries late last week, with quarterly car deliveries up 14% year over year and also June deliveries enhancing 60%. Part of that development was assisted in part due to the fact that pandemic restrictions were alleviated throughout that duration.

China has a really rigorous “zero-COVID” plan that limits activity by residents as well as has actually led to factories for Nio, as well as other EV makers, halting vehicle manufacturing.

Nio investors have actually gotten on a wild ride recently as they process rising cost of living data, rising anxieties of a global recession, and also climbing coronavirus instances in China. As well as 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 recently isn’t ended up right now.

Nio shareholders need to keep a close eye on any type of new developments concerning any kind of short-lived manufacturing facility closures or if there’s any kind of indication from the Chinese government that it’s scaling back on restrictions.

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