• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 37 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days They pay YOU to TAKE Natural Gas
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 3 days What fool thought this was a good idea...
  • 8 hours A question...
  • 5 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 12 days The United States produced more crude oil than any nation, at any time.
Putin Meets With Xi Jinping As Sanctions Weigh on Russian Economy

Putin Meets With Xi Jinping As Sanctions Weigh on Russian Economy

Russian President Vladimir Putin visited…

A Coal Stock Worth Buying?

A Coal Stock Worth Buying?

Buying coal stocks is not…

Covid Restrictions Force Chinese EV Maker To Suspend Production

China’s Nio, the EV maker, has suspended manufacturing activities due to Covid restrictions amid the latest flare-up in infections in the country.

"The news that production at Nio's factories has been temporarily suspended is true and this will have an impact on production and delivery schedules," a company representative told Reuters.

The latter cited a Chinese tech media outlet as having reported that Nio had been having difficulties with production since mid-October because of Covid lockdowns.

This is the second time this year Nio is suspending production, after it had to shut down its two factories in April, too, amid lockdowns.

Meanwhile, hopes are growing that the lockdowns will soon end, based on unverified reports on social media. China’s foreign ministry spokesman said Tuesday that he was not aware of any plans to relax Bejing’s zero-Covid policy, which dampened optimism but it appears that the hope remains China will at some point drop the strict measures.

“People may have misunderstood when they see the headline that it is about completely opening up, but in our view it is quite unlikely for China to completely abandon Zero Covid,” Zerlina Zeng, senior credit analyst at CreditSights, told Yahoo Finance. “It is politically sensitive to do away with it because during the party congress, the rhetoric around Zero Covid has been so strong.”

China has the biggest EV manufacturing industry in the world and it is exporting more and more EVs, especially to Europe. Manufacturing halts could hurt this growth market and also interfere with transition plans.

Meanwhile, investor confidence in Nio and the two other U.S.-listed Chinese EV makers, Li Auto and Expeng, is dwindling after years of losses. Bloomberg reported last week that Nio has shed some 69 percent of its market value since the start of the year, with Li Auto losing 56 percent and Expeng plunging by 86 percent due to uncertainty about their profitability.

ADVERTISEMENT

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News