Why Shares of Chinese electrical auto manufacturer Nio (NIO 0.44%) were tumbling today?

Shares of Chinese electric vehicle makerĀ nio stock today (NIO 0.44%) were tumbling today on apparently no company-specific information. Rather, financiers might be reacting to news from the other day that some parts of China were experiencing a surge in COVID-19 cases.

More lockdowns in the country can once more reduce the business‘s lorry manufacturing as it has in the recent past. Therefore, investors 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 actually implemented COVID-related restrictions has actually doubled. One of the areas is a district called Anhui, where Nio has a manufacturing facility.

Nio reported its second-quarter vehicle distributions late last week, with quarterly car deliveries up 14% year over year as well as June shipment raising 60%. Part of that development was helped partially since pandemic limitations were alleviated throughout that duration.

China has a very strict “zero-COVID” plan that limits movement by people as well as has actually led to manufacturing facilities for Nio, and other EV manufacturers, halting car manufacturing.

Nio investors have been on a wild flight lately as they refine rising cost of living data, rising worries of a global economic downturn, and climbing coronavirus instances in China. As well as with the most recent news that some parts of China are experiencing new lockdowns, it’s likely that the volatility Nio’s stock has actually experienced recently isn’t completed just yet.

Nio investors ought to maintain a close eye on any type of new advancements about any kind of short-term manufacturing facility closures or if there’s any kind of indicator from the Chinese government that it’s scaling back on limitations.

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