Why Shares of Chinese electrical auto manufacturer Nio (NIO 0.44%) were tumbling today?

Shares of Chinese electrical automobile manufacturer nio stock price today (NIO 0.44%) were toppling today on relatively no company-specific information. Instead, investors might be reacting to information from the other day that some parts of China were experiencing a rise in COVID-19 situations.

Much more lockdowns in the nation could once more slow the company‘s car production as it has in the recent past. As a result, investors pressed the electric car (EV) stock down 6.6% since 10:59 a.m. ET.

CNBC reported the other day that the number of cities in China that have carried out COVID-related constraints has doubled. Among the areas is a district called Anhui, where Nio has a manufacturing facility.

Nio reported its second-quarter automobile shipments late last week, with quarterly lorry shipments up 14% year over year and June distribution enhancing 60%. Part of that growth was assisted in part due to the fact that pandemic constraints were eased throughout that duration.

China has an extremely stringent “zero-COVID” plan that limits activity by citizens and has actually caused factories for Nio, as well as other EV makers, halting lorry manufacturing.

Nio investors have actually been on a wild ride lately as they refine rising cost of living information, increasing concerns of a global recession, and rising coronavirus instances in China. And also 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 experienced lately isn’t ended up just yet.

Nio shareholders must keep a close eye on any brand-new advancements concerning any temporary factory closures or if there’s any indication from the Chinese government that it’s downsizing on restrictions.

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