Due to Covid limitations and the most recent spike in infections in the nation, China’s Nio, an EV manufacturer, has halted production. (Read More)
According to a company spokesman. “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.“
The latter referenced a Chinese tech media publication. That said Nio has been experiencing manufacturing issues owing of Covid lockdowns since mid-October.
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.
Based on unconfirmed rumours on social media, anticipation that the lockdowns may end shortly is rising in the meanwhile.
Tuesday’s statement by the spokesman for China’s foreign ministry that he was unaware of any intentions to loosen Beijing’s zero-Covid policy dimmed optimism. But it seems that the expectation that China will eventually abandon the stringent controls still exists.
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.”
Because of the intense rhetoric regarding Zero Covid during in the party congress, getting rid of it would be politically controversial.
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.
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.
According to a Bloomberg story published last week. 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.