Shares of Chinese language electric-vehicle maker NIO (NYSE:NIO) have been shifting decrease on Wednesday afternoon. The corporate shared some constructive information — a manufacturing milestone — earlier within the day, however its shares have been caught in a sell-off of electric-vehicle shares which will have been pushed by investor issues about an ongoing scarcity of automotive semiconductors.
As of 1:30 p.m. EDT, NIO’s American depositary shares have been down about 5.9% from Tuesday’s closing worth.
NIO CEO William Bin Li had excellent news and a few less-good information to share at an occasion to commemorate the manufacturing of NIO’s 100,000th automobile on Wednesday. The excellent news is that NIO now has the flexibility to construct 10,000 of its upscale automobiles per thirty days.
That is a big milestone, however it comes with a catch: NIO is limiting manufacturing to only 7,500 automobiles per thirty days for now, as a result of provides of automotive semiconductors and battery cells are constrained amid world shortages. That is the not-so-good information, and it might be why NIO and different EV shares have been promoting off on Wednesday afternoon.
The 100,000th NIO, a blue ES8 SUV, rolled off the meeting line on the manufacturing unit owned by NIO’s manufacturing associate JAC in Hefei, Anhui province on Wednesday morning. In remarks to employees and media, Li famous that the primary automobile constructed on that line in Could 2018 was additionally an ES8 — however the present fashions have much-improved expertise and significantly longer vary.
In keeping with Chinese language electric-vehicle information website CNEVPost, Li informed reporters on the occasion on Wednesday that he expects the semiconductor scarcity to be a short-term problem, affecting NIO’s manufacturing within the present quarter — however probably easing after the center of the 12 months.
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