Why Shares of Chinese electric auto manufacturer Nio (NIO 0.44%) were rolling this morning?

Shares of Chinese electric cars and truck manufacturer nio stock price today (NIO 0.44%) were tumbling this morning on apparently no company-specific information. Instead, investors may be reacting to news from yesterday that some parts of China were experiencing a surge in COVID-19 situations.

A lot more lockdowns in the country could once again reduce the business‘s car manufacturing as it has in the current past. Because of this, financiers pushed the electric lorry (EV) stock down 6.6% as of 10:59 a.m. ET.

CNBC reported yesterday that the number of cities in China that have executed COVID-related restrictions has doubled. Among the locations is a province called Anhui, where Nio has a factory.

Nio reported its second-quarter lorry distributions late recently, with quarterly vehicle distributions up 14% year over year as well as June shipment enhancing 60%. Part of that development was helped in part because pandemic restrictions were eased throughout that duration.

China has a very rigorous “zero-COVID” policy that restricts movement by citizens and has actually led to factories for Nio, as well as various other EV makers, halting car production.

Nio capitalists have actually been on a wild flight recently as they refine rising cost of living data, increasing worries of a global recession, and rising coronavirus cases in China. As well as with one of the most current news that some parts of China are experiencing brand-new lockdowns, it’s likely that the volatility Nio’s stock has experienced lately isn’t ended up right now.

Nio shareholders should maintain a close eye on any brand-new growths about any short-lived factory closures or if there’s any indication from the Chinese federal government that it’s downsizing on restrictions.

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