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

Shares of Chinese electrical car makerĀ nio stock forecast (NIO 0.44%) were tumbling this morning on apparently no company-specific news. Instead, investors may be responding to news from the other day that some parts of China were experiencing a rise in COVID-19 cases.

Much more lockdowns in the country could once again slow down the firm’s lorry manufacturing as it has in the current past. Consequently, capitalists pushed the electrical car (EV) stock down 6.6% since 10:59 a.m. ET.

CNBC reported yesterday that the number of cities in China that have carried out COVID-related constraints has doubled. Among the areas is a district called Anhui, where Nio has a factory.

Nio reported its second-quarter vehicle distributions late recently, with quarterly lorry distributions up 14% year over year as well as June distribution increasing 60%. Part of that development was assisted partly due to the fact that pandemic constraints were relieved throughout that period.

China has a really strict “zero-COVID” policy that restricts motion by citizens and has led to manufacturing facilities for Nio, as well as other EV makers, halting automobile production.

Nio investors have gotten on a wild flight lately as they refine inflation data, increasing fears of a global economic downturn, and climbing coronavirus situations in China. And with the most recent news that some parts of China are experiencing brand-new lockdowns, it’s likely that the volatility Nio’s stock has experienced lately isn’t finished just yet.

Nio shareholders should maintain a close eye on any type of new growths concerning any type of short-term factory closures or if there’s any type of sign from the Chinese government that it’s downsizing on restrictions.

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