Shares of Chinese electrical cars and truck manufacturer nio stock today (NIO 0.44%) were rolling today on seemingly no company-specific news. Rather, investors might be responding to information from the other day that some parts of China were experiencing a rise in COVID-19 cases.
Much more lockdowns in the nation can once more reduce the business‘s lorry manufacturing as it has in the current past. Consequently, financiers pushed the electric automobile (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 restrictions has increased. One of the areas is a province called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter vehicle shipments late recently, with quarterly automobile deliveries up 14% year over year as well as June shipment raising 60%. Part of that development was helped partly since pandemic limitations were reduced during that duration.
China has an extremely rigorous “zero-COVID” plan that restricts motion by people and has actually caused factories for Nio, and various other EV manufacturers, stopping lorry production.
Nio capitalists have actually been on a wild ride recently as they refine rising cost of living information, climbing fears of a worldwide recession, and also climbing coronavirus cases in China. As well as with one of the most current news that some parts of China are experiencing new lockdowns, it’s most likely that the volatility Nio’s stock has actually experienced recently isn’t finished right now.
Nio investors need to keep a close eye on any type of new growths regarding any temporary manufacturing facility shutdowns or if there’s any type of indicator from the Chinese government that it’s scaling back on constraints.
Should you spend $1,000 in Nio Inc. now?
Prior to you consider Nio Inc., you’ll want to hear this.