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NIO Shares Fall As it Warns Chip Shortage Will Impact Production

Sam Boughedda trader
Updated 2 Mar 2021

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Shares of NIO are down so far on Tuesday after the company reported mixed Q4 earnings, and its CEO said on a call with analysts that shortages in chips and batteries will force production to slow. 

Fourth Quarter Results:

  • $0.14 loss per share
  • Revenue $1.02 billion +133.2%
  • Gross Margin 17.2% vs -8.9% Q4 2019
  • Vehicle Sales $946.2 million +130%

The electric vehicle maker’s deliveries during Q4 totalled 17,353 which included 4,873 ES8s, 7,574 ES6s and 4,906 EC6s. In 2019, total deliveries were 8,224, while there were 12,206 deliveries in Q3 2020. 

The whole of 2020 saw deliveries top 43,728 compared to 20,565 in 2019. 

Despite the positive quarter, NIO CEO William Li warned that a shortage in chips and batteries will force production to slow to 7,500 vehicles per month in Q2 from 10,000 per month. 

NIO’s shares have fallen over 7% to $45.85 following the comments.

In a statement accompanying the Q4 results, Li said: “NIO concluded a transformational 2020 with a new quarterly delivery record of 17,353 vehicles in the fourth quarter of 2020. 

“The strong momentum has continued in 2021 as we achieved a historic monthly delivery of 7,225 vehicles in January and a resilient delivery of 5,578 vehicles in February, representing strong 352% and 689% year-over-year growth, respectively.”

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.