Shares of Chinese electric cars and truck maker nio stock forum (NIO 0.44%) were rolling today on relatively no company-specific information. Rather, financiers may be responding to information from yesterday that some parts of China were experiencing a surge in COVID-19 situations.
More lockdowns in the nation can once again reduce the business‘s automobile production as it has in the recent past. Consequently, capitalists pushed the electric automobile (EV) stock down 6.6% since 10:59 a.m. ET.
CNBC reported yesterday that the variety of cities in China that have actually implemented COVID-related constraints has doubled. One of the areas is a province called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter vehicle shipments late last week, with quarterly vehicle shipments up 14% year over year as well as June shipment raising 60%. Part of that growth was helped partially due to the fact that pandemic limitations were alleviated throughout that duration.
China has a very strict “zero-COVID” policy that limits motion by citizens and also has resulted in factories for Nio, and various other EV makers, stopping automobile production.
Nio investors have gotten on a wild trip lately as they refine inflation data, climbing concerns of an international economic crisis, as well as climbing coronavirus instances in China. And with the most current news that some parts of China are experiencing new lockdowns, it’s most likely that the volatility Nio’s stock has experienced lately isn’t ended up just yet.
Nio investors need to keep a close eye on any kind of new developments about any kind of temporary manufacturing facility closures or if there’s any type of indicator from the Chinese government that it’s downsizing on limitations.
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