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

Shares of Chinese electrical vehicle makerĀ nio stock (NIO 0.44%) were tumbling today on seemingly no company-specific information. Rather, financiers might be responding to information from the other day that some parts of China were experiencing a rise in COVID-19 cases.

Much more lockdowns in the country can once again slow the company‘s automobile manufacturing as it has in the recent past. Consequently, financiers pressed the electrical car (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 actually executed COVID-related restrictions has actually doubled. One of the locations is a district called Anhui, where Nio has a manufacturing facility.

Nio reported its second-quarter car deliveries late last week, with quarterly car deliveries up 14% year over year and also June deliveries increasing 60%. Part of that development was helped partly due to the fact that pandemic restrictions were eased throughout that duration.

China has an extremely strict “zero-COVID” policy that restricts activity by citizens and has actually resulted in factories for Nio, as well as other EV manufacturers, halting lorry manufacturing.

Nio capitalists have actually been on a wild trip lately as they process inflation data, increasing anxieties of a global economic downturn, as well as rising coronavirus instances in China. And also 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 recently isn’t finished right now.

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

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