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

A lot more lockdowns in the nation can once again reduce the firm’s car manufacturing as it has in the current past. Therefore, capitalists pushed the electrical automobile (EV) stock down 6.6% as of 10:59 a.m. ET.

CNBC reported the other day that the variety of cities in China that have executed COVID-related limitations has actually increased. Among the areas is a province called Anhui, where Nio has a manufacturing facility.

Nio reported its second-quarter automobile deliveries late last week, with quarterly vehicle shipments up 14% year over year and June deliveries raising 60%. Part of that growth was assisted partly since pandemic constraints were eased throughout that duration.

China has an extremely rigorous “zero-COVID” plan that limits movement by citizens and has resulted in manufacturing facilities for Nio, as well as other EV makers, halting automobile manufacturing.

Nio investors have been on a wild flight recently as they process inflation data, climbing fears of a worldwide recession, and increasing coronavirus instances in China. And with the most recent information that some parts of China are experiencing new lockdowns, it’s likely that the volatility Nio’s stock has experienced lately isn’t finished right now.

Nio shareholders should keep a close eye on any brand-new advancements regarding any type of momentary manufacturing facility shutdowns or if there’s any sign from the Chinese government that it’s scaling back on restrictions.

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