Shares of Chinese electric car maker Nio (NIO -1.47%) were tumbling this morning on seemingly no company-specific news. Instead, investors may be reacting to news from yesterday that some parts of China were experiencing a surge in COVID-19 cases.
More lockdowns in the country could once again slow the company's vehicle production as it has in the recent past. As a result, investors pushed the electric vehicle (EV) stock down 6.6% as of 10:59 a.m. ET.
CNBC reported yesterday that the number of cities in China that have implemented COVID-related restrictions has doubled. One of the areas is a province called Anhui, where Nio has a factory.
Nio reported its second-quarter vehicle deliveries late last week, with quarterly vehicle deliveries up 14% year over year and June deliveries increasing 60%. Part of that growth was helped in part because pandemic restrictions were eased during that period.
China has a very strict "zero-COVID" policy that restricts movement by citizens and has resulted in factories for Nio, and other EV makers, halting vehicle production.
Nio investors have been on a wild ride lately as they process inflation data, rising fears of a global recession, and rising coronavirus cases in China. And with the most recent news that some parts of China are experiencing new lockdowns, it's likely that the volatility Nio's stock has experienced lately isn't finished just yet.
Nio shareholders should keep a close eye on any new developments about any temporary factory shutdowns or if there's any indication from the Chinese government that it's scaling back on restrictions.