Why Shares of Chinese electrical automobile maker Nio (NIO 0.44%) were tumbling this morning?

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

More lockdowns in the country could once again slow down the business‘s car manufacturing as it has in the current past. Because of this, investors pushed the electric lorry (EV) stock down 6.6% since 10:59 a.m. ET.

CNBC reported yesterday that the number of cities in China that have actually implemented COVID-related constraints has increased. Among the areas is a province called Anhui, where Nio has a factory.

Nio reported its second-quarter lorry shipments late recently, with quarterly automobile deliveries up 14% year over year as well as June distribution increasing 60%. Part of that development was aided in part because pandemic limitations were relieved during that duration.

China has a very rigorous “zero-COVID” plan that limits movement by residents and also has actually led to manufacturing facilities for Nio, and also other EV makers, halting vehicle manufacturing.

Nio financiers have actually gotten on a wild ride lately as they refine rising cost of living information, increasing anxieties of a worldwide recession, and also rising coronavirus instances in China. And with the most recent news that some parts of China are experiencing new lockdowns, it’s likely that the volatility Nio’s stock has experienced lately isn’t ended up just yet.

Nio investors need to keep a close eye on any brand-new growths regarding any kind of short-lived manufacturing facility closures or if there’s any indicator from the Chinese federal government that it’s scaling back on constraints.

Should you invest $1,000 in Nio Inc. today?
Prior to you consider Nio Inc., you’ll want to hear this.