Nio suspends production amid COVID lockdown

Nio (NIO.US) stock fell sharply at the beginning of today's session after the China-based electric car producer suspended production  after several of its supply chain partners in China had to shut down operations under lockdowns, according to CnEvPost. These news overshadowed record deliveries for the quarter ended in March - which jumped 37.5% YoY and 63% sequentially. Investors fear that a production halt will delay deliveries in the upcoming months which in turn could jeopardize the company's plans for 2022 and its financial results. Separately, EV maker plans to increase prices of its cars and battery-as-a-service (BaaS) program from May 10.

Nio (NIO.US) stock launched today's session with a bearish price gap, however buyers managed to regain control around the earlier broken upper limit of the descending channel at $17.85. At the moment stock erased early losses and if current sentiment prevails upward move may accelerate towards local resistance at $24.00. Source: xStation5