Shares of Chinese electrical vehicle makerĀ nio stock today (NIO 0.44%) were toppling this morning on relatively no company-specific information. Rather, investors may be responding to news from the other day that some parts of China were experiencing a surge in COVID-19 situations.

More lockdowns in the nation can once again reduce the firm’s vehicle manufacturing as it has in the recent past. Consequently, financiers pushed the electrical vehicle (EV) stock down 6.6% as of 10:59 a.m. ET.

CNBC reported yesterday that the variety of cities in China that have carried out COVID-related limitations has increased. One of the areas is a province called Anhui, where Nio has a factory.

Nio reported its second-quarter car shipments late last week, with quarterly car distributions up 14% year over year and also June deliveries increasing 60%. Part of that growth was helped partially since pandemic constraints were reduced throughout that period.

China has a really strict “zero-COVID” policy that limits activity by people as well as has actually caused manufacturing facilities for Nio, and other EV makers, halting vehicle manufacturing.

Nio investors have actually gotten on a wild flight lately as they refine inflation data, climbing fears of an international economic downturn, as well as rising coronavirus situations in China. As well as with one of the most current information that some parts of China are experiencing brand-new lockdowns, it’s most likely that the volatility Nio’s stock has actually experienced lately isn’t ended up right now.

Nio shareholders need to maintain a close eye on any brand-new growths about any type of short-lived manufacturing facility shutdowns or if there’s any sign from the Chinese federal government that it’s scaling back on constraints.

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