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

Shares of Chinese electrical cars and truck makerĀ nio stock (NIO 0.44%) were toppling today on apparently no company-specific information. Rather, capitalists might be reacting to information from yesterday that some parts of China were experiencing a rise in COVID-19 instances.

Much more lockdowns in the country might once again slow down the business‘s car manufacturing as it has in the current past. Consequently, financiers pressed the electrical lorry (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 applied COVID-related limitations has actually doubled. Among the areas is a district called Anhui, where Nio has a manufacturing facility.

Nio reported its second-quarter lorry shipments late last week, with quarterly automobile deliveries up 14% year over year as well as June distribution increasing 60%. Part of that development was assisted partly because pandemic limitations were relieved throughout that period.

China has a very stringent “zero-COVID” policy that restricts activity by residents and also has resulted in manufacturing facilities for Nio, and also other EV manufacturers, halting vehicle production.

Nio investors have actually gotten on a wild ride recently as they process inflation information, increasing worries of a worldwide economic crisis, as well as climbing coronavirus instances in China. And with one of the most recent news that some parts of China are experiencing new lockdowns, it’s likely that the volatility Nio’s stock has actually experienced recently isn’t finished right now.

Nio investors should keep a close eye on any type of new growths concerning any kind of short-lived factory closures or if there’s any kind of sign from the Chinese federal government that it’s scaling back on restrictions.

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