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

Shares of Chinese electric auto manufacturer nio stock quote (NIO 0.44%) were tumbling today on seemingly no company-specific news. Rather, capitalists may be responding to news from the other day that some parts of China were experiencing a surge in COVID-19 situations.

Extra lockdowns in the country might once more slow down the business's car manufacturing as it has in the current past. Therefore, investors pressed the electric car (EV) stock down 6.6% since 10:59 a.m. ET.

CNBC reported yesterday that the variety of cities in China that have actually implemented COVID-related limitations has doubled. Among the areas is a province called Anhui, where Nio has a manufacturing facility.

Nio reported its second-quarter automobile distributions late last week, with quarterly lorry shipments up 14% year over year and also June deliveries enhancing 60%. Part of that development was helped partly because pandemic constraints were relieved during that period.

China has a very strict "zero-COVID" policy that limits activity by citizens and also has actually resulted in manufacturing facilities for Nio, and various other EV makers, halting lorry manufacturing.

Nio financiers have been on a wild flight recently as they refine inflation information, rising anxieties of a worldwide recession, and climbing coronavirus situations in China. As well as with one of the most current information that some parts of China are experiencing new lockdowns, it's most likely that the volatility Nio's stock has experienced lately isn't finished just yet.

Nio investors must keep a close eye on any kind of brand-new developments regarding any kind of short-term factory closures or if there's any type of sign from the Chinese government that it's scaling back on limitations.

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