Chinese Tesla rival Nio says global chip shortage will hit its electric car production

A Nio Inc. ES6 electric SUV at a battery swap station inside a car parking zone in Shanghai on March 1, 2021.

Qilai Shen | Bloomberg | Getty Images

BEIJING — Chinese electric car start-up Nio mentioned Tuesday a global chip shortage will power it to fabricate fewer automobiles within the second quarter.

High demand for electronics amid the coronavirus pandemic and stress from U.S.-China commerce tensions on the extremely specialised semiconductor provide chain have contributed to a backlog in chip manufacturing.

Major automakers have needed to minimize production because of this, with China-based Nio the most recent to announce such reductions.

The firm had ramped up production capability in February to 10,000 autos a month, a rise from 7,500 beforehand, founder William Li mentioned in a quarterly earnings name Tuesday. But a shortage in chips and batteries means Nio will have to fall again to the 7,500 stage within the second quarter, he mentioned.

Nio predicts sturdy deliveries

Despite competitors from Tesla, Nio remained forward of its start-up rivals when it comes to automobile gross sales.

The firm delivered 7,225 autos in January and 5,578 in February amid the week-long Lunar New Year vacation. With a forecast of 20,000 to 25,000 deliveries within the first quarter, Nio anticipates deliveries will rise to not less than 7,197 automobiles in March.

In distinction, Xpeng mentioned Tuesday it delivered 2,223 electric automobiles final month, whereas Li Auto expects it will ship fewer than 4,000 automobiles a month within the first quarter.

Nio founder Li mentioned that pre-orders for the et7 sedan revealed in January have exceeded that of the corporate’s different fashions, however declined to share particular figures. The et7 is Nio’s first non-SUV client car and is about to start deliveries subsequent 12 months.

Li added the corporate remained on monitor with plans to enter Europe later this 12 months.

Shares of New York-listed Nio fell 4% in extended-hours buying and selling after reporting a fourth-quarter earnings lack of 0.93 yuan (14 cents) a share. That’s better than the 0.39 yuan loss per share predicted by analysts, based on FactSet.

The firm attributed an almost 33% quarterly improve in web losses — to 1.39 billion yuan ($212.eight million) within the final three months of 2020 — primarily to the depreciation within the U.S. greenback.

Nio shares soared greater than 1,000% final 12 months after the struggling start-up obtained a roughly $1 billion capital injection from state-backed traders, and merchants piled into the inventory alongside a surge in Tesla’s shares.

Looking forward, Nio expects whole income of seven.38 billion yuan to 7.56 billion yuan within the first quarter, up from 6.64 billion yuan within the fourth quarter.

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