Why Are Nio Shares Dropping Today?
Electric vehicle (EV) maker Nio (NYSE: NIO) was one of the latest automakers in China to be affected by lockdowns put in place to address a rise in COVID-19 cases. Today, a report said its production is ramping back up, but Nio shares are dropping anyway. As of 11:51 a.m. ET, the stock was down 3.9% from Wednesday's closing price.
A report in Barron's today said the company has resumed operations at its Hefei manufacturing facility after suspending them on Saturday. The plant itself, which is about 300 miles from Shanghai, wasn't directly impacted by lockdowns implemented in that city. But its supply chain was disrupted, with Nio saying in a statement over the weekend, "supplier partners in several places including Jilin, Shanghai and Jiangsu suspended production one after the other and have yet to recover."
Source Fool.com
