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Nio (NYSE:NIO) stock fell on Thursday as Chinese stocks continued to see volatility following President Xi Jinping’s assurance of a third term.
President Xi is strictly enforcing the Covid-19 lockdowns that continue to cripple China’s economy. The President suggested that these lockdowns will continue as the country’s government takes swift action to fight the virus.
The big news affecting Nio today is that major cities in China are seeing additional lockdowns. Wuhan and several other Chinese cities are reportedly entering new lockdowns as part of Xi’s Zero Covid policy.
What this Means for NIO Stock
Nio, as well as other Chinese companies, will likely continue to see volatility thanks to the lockdowns. This will cause problems for supply chains, which will in turn harm production and profits.
The electric vehicle (EV) sector is already feeling this with chip shortages affecting stocks over the past few years. That’s because of lockdowns that keep workers out of factories.
NIO is also seeing strong trading today with investors selling shares. As of this writing, more than 44 million shares have changed hands. That’s quickly approaching the daily average trading volume of about 48 million shares.
NIO stock fell 4.7% on Thursday morning and is down 69.4% since the start of the year.
Investors looking for more than the latest stock market news are in luck!
We’ve got it all ready with the latest stock news for Thursday! That includes what happens with the sharing of Ford (NYSE:F) stock, ContextLogic (NASDAQ:I WISH) stock, and Service Today (NYSE:NOW) stock now. You can catch up on all of that at the following links!
More Thursday Stock Market News
At the date of publication, William White does not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writers, subject to InvestorPlace.com Publishing Guidelines.