Shares of Chinese electric cars and truck maker nio stock quote (NIO 0.44%) were tumbling today on apparently no company-specific information. Rather, capitalists may be responding to news from the other day that some parts of China were experiencing a surge in COVID-19 situations.
Much more lockdowns in the country might once again reduce the firm’s car manufacturing as it has in the current past. Therefore, capitalists pushed the electrical vehicle (EV) stock down 6.6% since 10:59 a.m. ET.
CNBC reported yesterday that the number of cities in China that have implemented COVID-related limitations has actually doubled. One of the locations is a province called Anhui, where Nio has a factory.
Nio reported its second-quarter car shipments late last week, with quarterly vehicle distributions up 14% year over year and also June deliveries increasing 60%. Part of that development was aided partially due to the fact that pandemic limitations were reduced during that duration.
China has a really rigorous “zero-COVID” policy that limits movement by citizens and has resulted in manufacturing facilities for Nio, as well as various other EV makers, halting vehicle manufacturing.
Nio investors have actually gotten on a wild flight recently as they refine inflation data, rising fears of a worldwide economic downturn, as well as climbing coronavirus cases in China. As well as with one of the most recent news 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 just yet.
Nio shareholders need to maintain a close eye on any brand-new growths about any type of momentary factory shutdowns or if there’s any kind of sign from the Chinese government that it’s downsizing on constraints.
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