Due to Covid limitations and the most recent spike in infections in the nation, China’s Nio, an EV manufacturer, has halted production.
According to Zerlina Zeng, senior financial analyst at CreditSights. “People may have misinterpreted when they saw the headline that it was about entirely opening up. But in our opinion it is extremely improbable for China to ditch Zero Covid.”
China is the country with the largest EV manufacturing sector in the world and is exporting an increasing number of EVs, particularly to Europe. Stopping production might harm this expanding market and obstruct transitional efforts.
The news that manufacturing at Nio’s factories has been temporally pause is correct and this will have an effect on manufacturing and delivery dates
Nio has had to halt production twice already this year. The first occasion was in April when its two plants had to close due to lockdowns.
After years of losses, investor confidence in Nio as well as the two other Chinese EV manufacturers that are liste in the United States, Li Auto and Expeng, is declining.
Li Auto and Expeng’s stock prices have fallen by 56 percent and 86 percent, respectively. As a result of concerns about their profitability. While Nio has lost roughly 69 % of its market price since the year began.