REUTERS
- Nio fell as much as 8% on Friday after it said it is temporarily halting production due to a continued shortage in computer chips.
- Nio will halt production at its JAC-NIO plant for five days starting on March 29.
- The production halt has led Nio to reduce its first quarter delivery target by 1,000 vehicles.
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A continued global shortage in semiconductors has led Nio to temporarily halt production and reduce its first quarter delivery guidance.
Nio fell as much as 8% on Friday after it said it will temporarily halt production at its JAC-NIO plant for five days starting on March 29.
The production halt has led Nio to reduce its first quarter delivery guidance to 19,500 vehicles from 20,000-20,500 vehicles.
The shortage in computer chips isn't only impacting Nio's car production, as General Motors, Ford, and Hyundai have all been forced to reduce production in recent weeks due to supply constraints.
The shortage in chips has led to semiconductor manufacturers to ramp up production and invest in increased capacity. Intel recently announced a $20 billion investment to expand its production capabilities and capitalize on the continued increase in demand for semiconductors.
Shares of Nio are down nearly 30% year-to-date as investors flee high-tech growth stocks amid fears of rising inflation and a spike in interest rates.
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