Why Shares of Chinese electrical auto maker Nio (NIO 0.44%) were tumbling this morning?

Shares of Chinese electrical auto maker nio stock (NIO 0.44%) were toppling today on apparently no company-specific information. Rather, capitalists might be responding to news from the other day that some parts of China were experiencing a surge in COVID-19 instances.

A lot more lockdowns in the nation can once more slow the firm's automobile manufacturing as it has in the recent past. Consequently, capitalists pushed the electrical automobile (EV) stock down 6.6% since 10:59 a.m. ET.

CNBC reported yesterday that the variety of cities in China that have applied COVID-related constraints has actually doubled. One of the locations is a district called Anhui, where Nio has a manufacturing facility.

Nio reported its second-quarter vehicle distributions late last week, with quarterly vehicle distributions up 14% year over year and also June distribution increasing 60%. Part of that development was aided in part due to the fact that pandemic constraints were relieved throughout that duration.

China has an extremely stringent "zero-COVID" plan that limits activity by people and has actually led to factories for Nio, and other EV makers, halting car manufacturing.

Nio investors have gotten on a wild trip recently as they process inflation information, climbing concerns of an international recession, as well as climbing coronavirus instances in China. And also with the most recent information that some parts of China are experiencing brand-new lockdowns, it's likely that the volatility Nio's stock has experienced lately isn't completed just yet.

Nio investors should keep a close eye on any type of new growths regarding any type of short-lived factory shutdowns or if there's any kind of sign from the Chinese federal government that it's scaling back on restrictions.

Should you invest $1,000 in Nio Inc. right now?
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