Why Shares of Chinese electrical vehicle maker Nio (NIO 0.44%) were toppling today?

Shares of Chinese electric vehicle manufacturer nio stock forum (NIO 0.44%) were tumbling today on relatively no company-specific information. Rather, capitalists might be reacting to information from yesterday that some parts of China were experiencing a surge in COVID-19 cases.

A lot more lockdowns in the country might once again reduce the company‘s vehicle production as it has in the current past. Consequently, financiers pressed the electrical car (EV) stock down 6.6% since 10:59 a.m. ET.

CNBC reported yesterday that the variety of cities in China that have executed COVID-related restrictions has actually increased. One of the areas is a district called Anhui, where Nio has a manufacturing facility.

Nio reported its second-quarter lorry deliveries late last week, with quarterly automobile deliveries up 14% year over year and June deliveries enhancing 60%. Part of that growth was helped in part since pandemic restrictions were eased throughout that duration.

China has a really stringent “zero-COVID” policy that limits motion by people and also has actually led to manufacturing facilities for Nio, and also other EV manufacturers, stopping vehicle manufacturing.

Nio investors have actually gotten on a wild trip lately as they process inflation data, climbing anxieties of a global recession, and climbing coronavirus cases in China. And with one of the most current news that some parts of China are experiencing new lockdowns, it’s likely that the volatility Nio’s stock has actually experienced lately isn’t completed just yet.

Nio shareholders need to maintain a close eye on any new developments about any short-term factory shutdowns or if there’s any type of indicator from the Chinese federal government that it’s scaling back on constraints.

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