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published in Blogs
Mar 28, 2021
NIO (NIO, $36.13) is shutting plant for 5 days, amid chip shortage

NIO (NIO, $36.13) is shutting plant for 5 days, amid chip shortage

China electric carmaker NIO said that it is shutting a plant for five days, amid a global shortage in semiconductors.

The temporary halt in production will start March 29, and will cut deliveries by atleast 500 vehicles in the first quarter (which implies an expected Q1 delivery of 19,500, versus prior forecast of 20,000 to 20,500).

Global supply chains for semiconductors have been hurt due to the COVID-19 pandemic and US-China trade tensions. Nevertheless, Nio said its plant in Hefei, China, should be able to resume production at a normal pace after the five-day shutdown (Beijing News reported).

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