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

Shares of Chinese electrical auto manufacturer nio stock forecast (NIO 0.44%) were tumbling today on apparently no company-specific news. Instead, investors 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 can once more slow the firm’s lorry production as it has in the current past. As a result, investors pressed the electrical vehicle (EV) stock down 6.6% as of 10:59 a.m. ET.

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

Nio reported its second-quarter vehicle distributions late last week, with quarterly vehicle shipments up 14% year over year and also June shipment boosting 60%. Part of that development was aided in part since pandemic constraints were eased during that duration.

China has a really stringent “zero-COVID” plan that limits motion by people as well as has led to factories for Nio, and also various other EV makers, stopping car manufacturing.

Nio financiers have actually been on a wild trip recently as they refine inflation information, rising anxieties of an international economic crisis, and climbing coronavirus situations in China. And with the most recent information that some parts of China are experiencing brand-new lockdowns, it’s likely that the volatility Nio’s stock has experienced recently isn’t completed just yet.

Nio investors should maintain a close eye on any kind of brand-new growths about any type of short-lived manufacturing facility shutdowns or if there’s any indicator from the Chinese federal government that it’s scaling back on limitations.

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