Nio (NYSE:NIO) stock is taking a beating on Friday after the electric vehicle (EV) manufacturer announced plans to halt production due to supply constraints.
A press release from the company notes that it will be stopping EV production at its JAC-NIO manufacturing plant in Hefei for five working days. It cites a shortage in semiconductors as the reason behind this decision.
Nio goes on to say that the semiconductor shortage has affected its production in March 2021. According to the company, this will have it only producing 19,500 EVs in the first quarter of the year. It was previously aiming to manufacture between 20,000 to 20,500 EVs during that period.
News of the production delays is pushing NIO stock lower as it was already dealing with a falling price due to various issues. That includes investors leaving on fears of delisting as new guidelines for Chinese stocks go into effect. This is despite no evidence that NIO will be delisted.
So what does today’s news mean for NIO stock? That depends on who you ask. Bears that have been hard on the company are going to see it as further justification for their stance. However, bullish investors that are looking for a low entry point into NIO stock might see today’s news as a chance to get in before a potential rebound.
Luckily for NIO stock investors, not all recent news has been bad. There’s a chance that Nio will see a bounce back with some help from its home country. That comes from a rising interest in EVs in China, as well as rival EV maker Tesla (NASDAQ:TSLA) running into trouble in the country. In other words, don’t count NIO stock out just yet.
NIO stock was down 6.5% in pre-market trading on Friday and is down 29.1% since the start of the year.
Investors looking to catch up on the latest NIO stock news are in luck.
Nio has been a hot topic among investors of late and InvestorPlace.com has been keeping up with the news. That means there’s a wealth of content below for investors that want to read up more on Nio today.
More NIO Stock News
- NIO and Other EV Makers Slide, So Why Aren’t People Buying the Dip?
- Buy the Nio Dip, or Heed the Rising Political Rhetoric?
- Chinese EV Stocks: Why NIO, LI and XPEV Stocks Are Crashing
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.