Why Shares of Chinese electric car manufacturer Nio (NIO 0.44%) were rolling today?

Shares of Chinese electrical vehicle manufacturer nio stock forecast (NIO 0.44%) were toppling this morning on apparently no company-specific information. Instead, capitalists may be responding to news from the other day that some parts of China were experiencing a rise in COVID-19 cases.

More lockdowns in the country could once again slow the company‘s car production as it has in the current past. Consequently, investors pressed the electrical 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 carried out COVID-related constraints has actually doubled. Among the areas is a district called Anhui, where Nio has a factory.

Nio reported its second-quarter lorry distributions late last week, with quarterly vehicle deliveries up 14% year over year and June distribution raising 60%. Part of that development was helped partially because pandemic constraints were eased throughout that period.

China has a really strict “zero-COVID” policy that limits movement by people as well as has actually caused manufacturing facilities for Nio, as well as various other EV makers, stopping lorry manufacturing.

Nio investors have gotten on a wild ride recently as they refine inflation information, rising fears of an international economic crisis, and rising coronavirus instances in China. As well as with one of the most recent information that some parts of China are experiencing brand-new lockdowns, it’s most likely that the volatility Nio’s stock has actually experienced lately isn’t finished just yet.

Nio investors ought to maintain a close eye on any new developments concerning any type of short-term factory closures or if there’s any kind of sign from the Chinese government that it’s scaling back on restrictions.

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