NIO Stock: Nio Looks to Shake Off Chip Shortage With Q1 Deliveries

Advertisement

Shares of Nio (NYSE:NIO) are bouncing back for a third day after the Chinese electric vehicle maker reported impressive growth. The NIO stock price was up 5.8% in pre-market trading at 7:30 a.m. Eastern.

A Nio (NIO) sign outside of the company's facilities in Shanghai, China.

Source: Andy Feng / Shutterstock.com

Nio delivered 7,257 vehicles in March 2021, increasing by 373% year-over-year. For the quarter, it delivered 20,060 vehicles, up 423% YOY.

The sizeable sales gains may have caught NIO stock investors off guard after the manufacturer last week announced plans to halt production due to supply constraints. Citing a semiconductor shortage, the company said EV production would only reach 19,500 vehicles in the quarter.

Today’s announcement showed actual production was at the low end of the previously guided range of 20,000 to 20,500 EVs. NIO was not the only Chinese EV maker to see stellar production in the period. Xpeng (NYSE:XPEV) yesterday reported record quarterly delivery of 13,340 vehicles in Q1 2021, representing a 487% increase YOY.

Mixed Signals Roil NIO Stock

Automakers worldwide have been forced to cut production amid a global shortage of computer chips, as the consumer electronics industry seemingly sucks up all available supply.

Manufacturers from Ford (NYSE:F) to Fiat Chrysler have idled production while waiting for delivery of microprocessors and other chips.

Mixed signals from Nio haven’t given investors much confidence that its manufacturing was immune from the dearth of chips. Recent reports outlining the fact a chip shortage could derail short-term growth has taken this stock markedly lower. The company announced during its last earnings call that slower growth as a result of chip shortages would affect EV production in the just-ended quarter.

On a path to establish dominance in the huge Chinese EV market, Nio has been pegged to also gobble up global market share. A chip shortage could dash those expectations. However, this morning’s production update was noticeably devoid of any mention of such problems.

On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.

 


Article printed from InvestorPlace Media, https://investorplace.com/2021/04/nio-stock-nio-looks-to-shake-off-chip-shortage-with-q1-deliveries/.

©2024 InvestorPlace Media, LLC