Shares of Chinese electrical auto manufacturer nio stock forecast (NIO 0.44%) were tumbling this morning on seemingly no company-specific news. Rather, investors may be reacting to information from the other day that some parts of China were experiencing a surge in COVID-19 cases.
More lockdowns in the country can once again reduce the company‘s vehicle manufacturing as it has in the current past. As a result, capitalists pushed the electric car (EV) stock down 6.6% as of 10:59 a.m. ET.
CNBC reported yesterday that the number of cities in China that have carried out COVID-related limitations has actually doubled. Among the locations is a district called Anhui, where Nio has a manufacturing facility.
Nio reported its second-quarter car deliveries late last week, with quarterly automobile distributions up 14% year over year and also June shipment increasing 60%. Part of that growth was aided in part due to the fact that pandemic restrictions were reduced throughout that period.
China has a really rigorous “zero-COVID” plan that restricts activity by citizens and also has caused manufacturing facilities for Nio, as well as other EV makers, halting lorry production.
Nio capitalists have actually been on a wild ride recently as they refine rising cost of living information, climbing concerns of a worldwide economic downturn, and also climbing coronavirus situations in China. And also with one of the most current information that some parts of China are experiencing new lockdowns, it’s likely that the volatility Nio’s stock has experienced lately isn’t ended up right now.
Nio shareholders need to maintain a close eye on any new advancements regarding any kind of short-term factory shutdowns or if there’s any sign from the Chinese government that it’s downsizing on constraints.
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