new-recommended-broker-banner new-recommended-broker-banner
Practice Stock Trading Your capital is at risk

Electric car manufacturer NIO Inc (NYSE: NIO) will temporarily suspend vehicle production at its JAC-NIO manufacturing plant in Hefei, the company said on Friday.

The suspension will be for five days starting from March 29 and comes due to a semiconductor shortage.

Semiconductors are materials that can conduct electricity and have become vital to the technology we use every day. They are now used in microchips in nearly all electronic devices, with electric vehicles said to use more than 3,000 in one car.

The shortage can be put down to the coronavirus pandemic with the demand for gadgets such as laptops and games consoles increasing (meaning more semiconductors used) and production slowing due to stay at home orders.

However, as some parts of the world have begun to relax restrictions, car sales have increased, and there has been a shortfall in semiconductors.

“The overall supply constraint of semiconductors has impacted the Company’s production volume in March 2021,” said NIO.

The company said it now expects to deliver approximately 19,500 vehicles in the first quarter of 2021, adjusted down from the previous forecast of between 20,000 to 25,000 cars.

NIO shares are trading 5.6%% lower from Thursday’s close at $35.80.

Should You Invest in NIO Shares?

One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .