nio-stock-drops-after-deliveries-outlook-cut,-citing-‘uncertainty’-of-chip-supplies

Nio stock drops after deliveries outlook cut, citing ‘uncertainty’ of chip supplies

Shares of Nio Inc.
NIO,
3.99%

slumped 4.1% in premarket trading Wednesday, after the China-based electric vehicle maker cut its third-quarter deliveries outlook, citing the “uncertainty and volatility” of semiconductor supplies. The company now expects to deliver 22,500 to 23,500 vehicles in the third quarter, down from previous guidance of 23,000 to 25,000 vehicles. For the month of August, the company deliveries increased 48.3% from a year ago to 5,880 vehicles. “While the company’s new order reached an all-time high in August driven by the increasing demand, the vehicle production, especially the manufacturing of the ES6 and EC6, was materially disrupted by supply chain constraints from from the COVID-19 pandemic in certain areas of China and Malaysia,” the company said in a statement. The stock has lost 7.2% over the past three months through Tuesday, while shares of U.S.-based EV rival Tesla Inc.
TSLA,
0.66%

have run up 17.9% over the same time and the S&P 500
SPX,
-0.13%

has gained 7.6%.