Shares of Chinese electrical cars and truck manufacturer nio stock price today (NIO 0.44%) were toppling this morning on seemingly no company-specific news. Rather, capitalists might be reacting to information from yesterday that some parts of China were experiencing a rise in COVID-19 situations.

Extra lockdowns in the country might once more slow the firm’s car manufacturing as it has in the current past. Because of this, capitalists pushed the electric automobile (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 executed COVID-related constraints has increased. Among the areas is a district called Anhui, where Nio has a manufacturing facility.

Nio reported its second-quarter car shipments late recently, with quarterly lorry deliveries up 14% year over year and also June deliveries raising 60%. Part of that growth was aided in part due to the fact that pandemic constraints were eased throughout that period.

China has an extremely stringent “zero-COVID” policy that limits activity by citizens and has actually led to manufacturing facilities for Nio, as well as various other EV makers, halting lorry production.

Nio capitalists have been on a wild flight recently as they refine inflation information, rising worries of a global economic downturn, and also climbing coronavirus cases in China. As well as with the most current information that some parts of China are experiencing brand-new lockdowns, it’s most likely that the volatility Nio’s stock has actually experienced recently isn’t finished just yet.

Nio investors ought to keep a close eye on any type of brand-new advancements concerning any type of temporary factory shutdowns or if there’s any kind of indication from the Chinese federal government that it’s downsizing on restrictions.

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