Shares of Chinese electric car manufacturer nio stock news (NIO 0.44%) were rolling today on relatively no company-specific news. Instead, capitalists may be reacting to information from the other day that some parts of China were experiencing a surge in COVID-19 situations.
Extra lockdowns in the country might once again reduce the firm’s automobile production as it has in the current past. Because of this, 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 applied COVID-related restrictions has doubled. One of the locations is a province called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter vehicle deliveries late recently, with quarterly vehicle deliveries up 14% year over year and June deliveries boosting 60%. Part of that development was assisted in part because pandemic restrictions were alleviated throughout that duration.
China has a very rigorous “zero-COVID” plan that limits activity by people as well as has led to factories for Nio, and also various other EV manufacturers, stopping vehicle production.
Nio investors have been on a wild ride recently as they refine inflation information, increasing fears of a global recession, as well as increasing coronavirus cases in China. And with one of the most recent news that some parts of China are experiencing new lockdowns, it’s likely that the volatility Nio’s stock has experienced recently isn’t finished just yet.
Nio investors need to keep a close eye on any type of brand-new developments regarding any kind of short-term factory shutdowns or if there’s any indicator from the Chinese federal government that it’s scaling back on restrictions.
Should you spend $1,000 in Nio Inc. today?
Prior to you take into consideration Nio Inc., you’ll wish to hear this.
