Why Is Nio (NIO) Stock Down 5% Today?

  • Nio (NIO) stock is falling on Thursday as China begins more lockdowns.
  • This news comes after President Xi Jinping secured a third term in office.
  • Continued lockdowns are part of the country’s zero-Covid policy.
exterior of NIO store. A Chinese electric car brand NIO Stock.

Source: Robert Way / Shutterstock.com

Nio (NYSE:NIO) stock is falling on Thursday as Chinese stocks continue to see volatility following news that President Xi Jinping has secured a third term.

President Xi Jinping has been strictly enforcing Covid-19 lockdowns, which have continued to hurt the Chinese economy. The president has also suggested that lockdowns will continue as the government takes swift action to combat the virus.

The big news affecting NIO stock today is the fact that major cities in China are seeing additional lockdowns. Wuhan and several other Chinese cities are reportedly going into new lockdowns as part of Xi Jinping’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 earnings.

The electric vehicle (EV) sector has already been feeling this kind of pain, with chip shortages affecting stocks over the last couple of years. That’s due in part to lockdowns, which have kept workers from factories.

NIO is seeing strong trading today as investors sell off 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 is down 4.7% as of Thursday morning and down 69% since the start of the year.

Investors seeking out more of the latest stock market news are in luck!

We’ve got all of it ready to go with the most recent stock news for Thursday! That includes what’s going on with shares of Ford (NYSE:F) stock, ContextLogic (NASDAQ:WISH) stock and ServiceNow (NYSE:NOW) stock today. You can catch up on all of that at the following links!

More Thursday Stock Market News

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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