Nio shares jumped after the company reported third-quarter results on Nov. 10, predicting fourth-quarter deliveries of as many as 48,000 vehicles. That's compared to 31,607 in the third quarter, and implies a significant acceleration of sales in November and December.

Investors fear that rising COVID-19 cases in China now increase the risk that Nio will again be impacted by the strict policies used to contain those cases. Nio and other EV makers in the country have already had to face production delays,supply chain challenges, and sagging consumer demand caused by prior restrictions including city lockdowns.

Nio seemed ready to make up for those missed deliveries in the fourth quarter. The new cases and lockdown in Guangzhou -- a city of nearly 19 million people -- could result in Nio missing its latest delivery estimates. That in turn will push back any progress toward profitability, causing investors to sell.$NIO Inc.(NIO)$