Shares of Chinese electrical car maker nio stock forecast (NIO 0.44%) were rolling this morning on apparently no company-specific news. Instead, investors might be reacting to news from yesterday that some parts of China were experiencing a surge in COVID-19 cases.
More lockdowns in the country might once more slow the firm’s vehicle manufacturing as it has in the recent past. As a result, investors pushed the electrical vehicle (EV) stock down 6.6% since 10:59 a.m. ET.
CNBC reported yesterday that the number of cities in China that have actually carried out COVID-related constraints has doubled. One of the areas is a province called Anhui, where Nio has a factory.
Nio reported its second-quarter vehicle distributions late last week, with quarterly automobile shipments up 14% year over year as well as June shipment enhancing 60%. Part of that growth was aided partially due to the fact that pandemic limitations were reduced during that duration.
China has an extremely stringent “zero-COVID” plan that limits movement by people as well as has actually resulted in factories for Nio, and also other EV manufacturers, halting automobile production.
Nio capitalists have been on a wild trip recently as they process inflation information, increasing worries of a global recession, and increasing 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 experienced recently isn’t ended up just yet.
Nio shareholders ought to maintain a close eye on any type of new developments regarding any kind of temporary manufacturing facility shutdowns or if there’s any type of indicator from the Chinese government that it’s downsizing on limitations.
Should you spend $1,000 in Nio Inc. right now?
Before you consider Nio Inc., you’ll intend to hear this.