Nio stock slumps after supply outlook lowers, citing ‘uncertainty’ of chips supply

Shares of Nio Inc. NIO,
fell 4.1% in premarket trading Wednesday after the China-based electric vehicle manufacturer lowered its third-quarter supply outlook, citing the “uncertainty and volatility” of semiconductor deliveries. The company now expects to deliver 22,500 to 23,500 vehicles in the third quarter, compared to previous expectations of 23,000 to 25,000 vehicles. For the month of August, the company’s deliveries rose 48.3% from a year ago to 5,880 vehicles. “While the company’s new order reached an all-time high in August, driven by increasing demand, vehicle production, particularly production of the ES6 and EC6, was significantly disrupted by supply chain constraints due to the COVID-19 pandemic. in certain areas of China and Malaysia,” the company said in a statement. The stock has lost 7.2% in the past three months through Tuesday, while shares of US-based EV rival Tesla Inc. TSLA,
are up 17.9% over the same time and the S&P 500 SPX,
won 7.6%.