Why Nio Shares Were More Than 6% Higher This Morning
Nio (NYSE: NIO) shares surged Tuesday morning in a second day of volatile trading for the stock. Nio also spiked Monday morning as reports spread of public protests across China over that country's strict zero-COVID policy. The stock gave up those early gains Monday, but the situation is fluid, and shares soared by nearly 8% in early trading Tuesday. As of 11:43 a.m. ET, the stock was holding onto a 6.3% gain.
Beyond the dynamic situation related to COVID-19 restrictions in China, there was news out Tuesday that was specific to the electric vehicle (EV) maker. Nio and Chinese tech giant Tencent Holdings have agreed to work together on developing autonomous driving technology and high-definition mapping systems, according to a CNBC article.
The zero-COVID policy is having more immediate effects on Nio's business, as manufacturers in China have lost production and sales due to numerous strict lockdowns imposed this year to contain outbreaks.
Source Fool.com
