Nio Inc NIO said Tuesday that a worldwide shortage of semiconductors means it will make fewer vehicles in the second quarter, CNBC reported Tuesday.
What Happened: Production levels will have to be cut down to 7,500 units a month in Q2 after touching 10,000 vehicles in February, the company’s CEO William Li said during the latest quarterly earnings call.
The executive said that manufacturing could ramp up again in July for a total capacity of 150,000 units per single shift. There is a potential to double production by early 2022 to 300,000 vehicles a year by deploying two shifts.
Why It Matters: Chip shortage has affected major automakers such as Ford Motor Company F and General Motors Company GM whose automotive earnings fell by a third, according to Bloomberg.
Segment leader Tesla Inc TSLA too closed its Fremont, California factory due to a parts shortage.
Nio delivered 5,578 vehicles in February, compared with 7,225 in January, a fall of 22.8%. The Chinese automaker expects to deliver 20,000 to 20,500 vehicles for the quarter.
Q4 loss per share stood at RMB 0.93 or 14 cents steeper than analysts’ average of seven cents per share.
The company expects to commence exports to Europe in the second half of 2021, according to Li.
Rival Xpeng Inc XPEV started exports to Europe in December and in February dispatched the second batch of its G3 SUVs to the nordic nation.
Price Action: Nio shares fell 4.14% in the after-hours session to $47.70 on Monday after closing 8.69% higher at $49.76.
Click here to check out Benzinga’s EV Hub for the latest electric vehicles news.
Photo: Courtesy of Nio
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.