Why NIO Stock Is Moving Lower Today

NIO’s CEO said that the worldwide semiconductor shortage would possibly well restrict sales development for a while.

What took role

Shares of Chinese language electrical-car maker NIO (NYSE:NIO) had been though-provoking lower on Wednesday afternoon. The firm shared some certain news — a manufacturing milestone — earlier within the day, nevertheless its shares had been caught in a sell-off of electrical-car shares that would possibly well had been pushed by investor concerns about an ongoing shortage of car semiconductors.

As of 1: 30 p.m. EDT, NIO’s American depositary shares had been down about 5.9% from Tuesday’s closing ticket. 

So what

NIO CEO William Bin Li had factual news and some much less-factual news to piece at an tournament to commemorate the manufacturing of NIO’s 100,000th car on Wednesday. The factual news is that NIO now has the flexibility to secure 10,000 of its upscale autos monthly. 

That’s a significant milestone, nonetheless it comes with a opt: NIO is limiting manufacturing to factual 7,500 autos monthly for now, on account of supplies of car semiconductors and battery cells are constrained amid worldwide shortages. That’s the no longer-so-factual news, and it would possibly well be why NIO and other EV shares had been selling off on Wednesday afternoon. 

A NIO ES8 electric SUV rolls off the assembly line under a banner commemorating the occasion.

NIO achieved its 100,000th car, a blue ES8, on Wednesday. Image supply: NIO.

The 100,000th NIO, a blue ES8 SUV, rolled off the assembly line at the manufacturing facility owned by NIO’s manufacturing partner JAC in Hefei, Anhui province on Wednesday morning. In remarks to workers and media, Li eminent that the first car built on that line in Could well 2018 turned into additionally an ES8 — nevertheless the latest units possess grand-improved skills and seriously longer vary.

Now what

Based completely on Chinese language electrical-car news internet site CNEVPost, Li steered reporters at the tournament on Wednesday that he expects the semiconductor shortage to be a short lived topic, affecting NIO’s manufacturing within the latest quarter — nevertheless seemingly easing after the heart of the 365 days. 

This text represents the scheme of the author, who would possibly well disagree with the “first payment” advice role of a Motley Fool top payment advisory service. We’re motley! Questioning an investing thesis — even one amongst our possess — helps us all procure seriously about investing and score selections that attend us change into smarter, happier, and richer.

John Rosevear has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends NIO Inc.. The Motley Fool has a disclosure policy.”>

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