Shares of Chinese electric auto manufacturer nio stock today (NIO 0.44%) were toppling this morning on seemingly no company-specific information. Rather, investors may be responding to information from the other day that some parts of China were experiencing a rise in COVID-19 situations.

A lot more lockdowns in the country might once again slow down the company's lorry production as it has in the current past. Because of this, capitalists pressed the electrical car (EV) stock down 6.6% as of 10:59 a.m. ET.

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

Nio reported its second-quarter lorry shipments late last week, with quarterly automobile shipments up 14% year over year and June distribution enhancing 60%. Part of that growth was helped in part because pandemic constraints were relieved throughout that period.

China has an extremely rigorous "zero-COVID" policy that restricts activity by citizens as well as has resulted in factories for Nio, as well as other EV makers, stopping car production.

Nio investors have actually been on a wild flight recently as they process inflation information, climbing anxieties of a worldwide recession, as well as increasing coronavirus cases in China. As well as with the most current 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 ought to maintain a close eye on any new growths regarding any short-term manufacturing facility closures or if there's any type of indication from the Chinese government that it's downsizing on limitations.

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