Why Shares of Chinese electrical vehicle manufacturer Nio (NIO 0.44%) were tumbling this morning?

Shares of Chinese electric vehicle manufacturer nio stock price today (NIO 0.44%) were tumbling this morning on relatively no company-specific information. Rather, investors might be reacting to news from the other day that some parts of China were experiencing a rise in COVID-19 cases.

More lockdowns in the country might once again slow the business‘s automobile manufacturing as it has in the current past. Because of this, financiers pressed the electric automobile (EV) stock down 6.6% since 10:59 a.m. ET.

CNBC reported the other day that the variety of cities in China that have actually carried out COVID-related limitations has actually increased. One of the locations is a province called Anhui, where Nio has a manufacturing facility.

Nio reported its second-quarter automobile distributions late recently, with quarterly vehicle distributions up 14% year over year as well as June deliveries enhancing 60%. Part of that development was helped partially due to the fact that pandemic restrictions were eased throughout that duration.

China has an extremely stringent “zero-COVID” policy that restricts movement by citizens and also has actually resulted in manufacturing facilities for Nio, and also other EV makers, halting vehicle production.

Nio financiers have gotten on a wild ride lately as they process rising cost of living data, rising fears of a worldwide economic downturn, and increasing coronavirus situations 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 right now.

Nio shareholders must keep a close eye on any new advancements about any kind of short-term manufacturing facility closures or if there’s any type of sign from the Chinese federal government that it’s downsizing on constraints.

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