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Nio shuts down its factory due to acute shortage of chips

Chinese electric car maker Nio said it will shut down its factory for 5 days due to a worldwide shortage of computer chips and semiconductors. Founded in late 2014, Nio is one of the leaders in the smart electric vehicle market, and aims to establish an advanced lifestyle and society starting with electric vehicles, and seeks to increase the number of its customers by providing environmentally friendly solutions.

The process of stopping its production will start on the 29th of this March, so that the company’s shipments of orders in the first quarter will decrease by about 500 vehicles at least, which will lead to a decrease in its total shipments in the first quarter to 19.5 thousand vehicles, thus, it failed to achieve its previously announced expectations, by charging about 20-20.5 thousand electric cars during the first three months of this year.

In 2021, Nio is set to achieve more shipments than its competitors, which include Xpeng and Li Auto, even as production capacity is reduced.

Many car manufacturers around the world have announced that they have stopped production due to the severe shortage of computer chips, as the supply chain specialized in these chips has suffered great damage due to the spread of the Corona epidemic, in addition to the trade tensions between China and the United States that began during the administration of former US President “Trump”.

According to the stock market, Nio’s stock declined by 9.79% to $34.22.

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